Bootstrap and handle your housing loan properly this holiday season

By: Zeng Han Jun, CPCG, Singapore







With the holiday season around, it is difficult to enjoy if you have your home loan payment issues lingering at the back of your brain. Worst yet is if you have an impending foreclosure on your house. Focus on what you can do to stop this problem from happening so you can enjoy your holidays in peace.








Here are a few tips which you can use to stop foreclosure on your house:









1) Stop blaming your banks, financial institutions or yourself for the problem that has arise. You cannot control what kind of solutions that they may be able to offer you so quit blaming them. Instead of quarreling with them, why not listen to their solutions in a calm manner and see what they can offer you. Their solutions may not be so bad after all. Quarreling with them will get you no where. By choosing to work with the people at the banks or financial institutions, you may have a far better chance of stopping the foreclosure on your house.








2) Opt for an interest only payment scheme. What this means is that you apply to pay only the interest of your monthly installments. Yes, the principal portion does not get paid down but remember, the priority right now is to secure your house. You can always go back to the normal paying scheme that pays down your principal amount when your financials get better. Call up or write in to your bank’s credit department to discuss about this option.








3) Get some flexible timing jobs to earn some extra cash for your housing installments. A part time sales job may be a good idea and who knows; you might even quit your present job and make your part time sales job the main occupation. Get some real cash flowing into your pockets right now. No use trying to borrow money from friends, relatives, credit cards or personal loans. Your housing loan installment is a monthly thing, and how long can your friends and relatives lend you the money to clear your installments? Never borrow from a credit card or personal loan to pay off your housing loan. Credit cards and personal loans are more expensive than housing loans and if you decide to pay off housing loan using such facilities as a short term measures, you are setting yourself up for greater financial troubles.








4) Sell your house away and rent. You might have to sell off your house at a deeply discounted price, but it might be a good idea to sell your house and opt for renting. Renting frees you from many troubles that owning a house may have. Scout carefully and you can find a rent that is much lower than your present monthly installment.








Many people look for refinancing in the face of a pending foreclosure. It may be a little late for that. If you refinance constantly through your loan tenure, you would have save a huge some of money which you can put it in an interest bearing account or alternative investment. You would be able to draw upon it for rainy days. If you think that a foreclosure is impending, there must be several reasons for it; retrenched, bad investment, deep loan recalls and etc. And remember, refinancing requires you to bear some legal cost as well. There are many other types of solutions to stop that foreclosure and it really depends on the type of residence that you reside in.


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