When I was faced with foreclosure, I decided if I was going down, I was going kicking and screaming! I was not going to lose my home without a fight! I was able to find a way to save my home and avoid foreclosure by doing something I think is truly unique. If I can do it, almost anyone can, with a few exceptions. At least that is my hope for writing this article. If even one family manages to avoid foreclosure and save their home by learning from my experience it will have been well worth the effort!
Many of us are in the same boat, about to lose our homes, holding on by our fingernails while drawing our unemployment benefits. You start falling behind in those bank payments and before you know it, you get the dreaded certified letter in the mail. Now, think outside the box, and read on to see how I avoided foreclosure on my own home, just by the skin of my teeth!
“The Big Idea” came when I was 3 months behind on my house note. If i could sell enough off to buy a used mobile home and bring it onto my property, i could live there and rent out the house for enough money to pay the mortgage with. You will have to decide if you want to move out of your home and rent it out or to just rent out the trailer. I found that I was able to rent out the house for far more money than the trailer would bring. Also you get to use the security deposit as well. The last month’s rent on the lease can be forfeited by the landlord or saved to return to the tenant. The amount of the deposit equals the amount of the monthly rental rate. When I rented out my home, i was immediately able to take over 3000 to the bank and it saved my home from foreclosure! Now every month I will be able to receive 1500 a month in cash to make the payment with.
Check with your local zoning regulations and neighborhood codes at the land or recorder’s office of your county and make sure you can have 2 living quarters on your property and that you can have a house trailer. Sometimes you can get lucky and find one for a very low price or even free. The cost of moving a trailer is so much that sometimes people will gladly give them away just to get someone to take it. Go and look at the ones you find in classified ads. You should be able to find a decent house trailer for under $3,000. Then, do your research and call every ad in the phone book, search the Craigslist, and newspapers, for the mobile home mover who will move your new home for the lowest price. Sometimes you can find ones who say they will do the entire job for a certain price.
First, most home owner’s have things of value they could sell to come up with about $5,000. I say that amount because that’s what it ended up costing me. I live in a small town in Alaska, where almost everything costs more than you down there in the lower ’48. So you may not have to come up with quite so much, but the amount would be close to it. The temptation will be great to put this cash onto the house payment to avoid the foreclosure, but this investment will carry you through times of unemployment and be an income source for you forever.
Second, the time has come to sell the toys. Do you have an extra car, boat, truck, trailer, RV, anything of this nature? Start at the top, and take an account of your assets. What do you have that you can sell? Go to the Craigslist on the Internet and list the item for sale. Keep it updated. If it doesn’t sell within one week, drop the price, rewrite the ad, and post a new ad so that you be sure to get top billing again. Most calls come in from the newest ads. In order to avoid foreclosure, you will be on a time limit. It’s more important to sell the item so don’t be afraid to start coming down on that price. Gathering money is the main mission.
Third, have a big yard sale and sell everything that you do not move into your house trailer. Down-size, but take your time and make it comfortable. Hopefully you have a nice storage shed, basement area or attic where you can store the belongings you really don’t need and can live without for a few years. You’ll be surprised at how much you really can put away.
The goal is for you to move into the trailer and rent out the house. You can ask double the 1st month’s rent for your security deposit. Setting yourself up as a landlord takes a little time and effort but is well worth being able to save your home from foreclosure. You may not be ready, as I wasn’t, to re-enter the world as a renter or to move in with relatives. This is something a little different. Read my next article to follow that will describe in more detail the steps I took and how I was able to manage to get this wild idea to work!