By now I know you’ve heard of all the programs that are available to help homeowners avoid foreclosure. There are lender programs, government programs, Fannie Mae programs, Freddie Mac programs and the list can go on and on… and they all have guideline after guideline to explain the guideline you just read. That’s okay too… you can easily find a reputable loss mitigation or loan modification company that understands all the guidelines and can help you navigate the foreclosure jungle.
What if you really want to save your home from foreclosure but don’t have enough income to qualify? We’ve been taught all the things we must do or have to buy a home…but never anything about how foreclosure can change those requirements. The reason for this is that no one buys a home with the idea of foreclosure in mind and those facing it now never thought it would happen to them.
An additional source of income could be the difference in saving your home from foreclosure. It is important to understand that you are not trying to obtain a loan or refinance your home and therefore the requirements are different. A low debt-to-income ratio and length of employment aren’t as important, and neither is an outstanding credit report. The lender just wants to know if all the debt obligations were included in the financial statement and the homeowner can now make the monthly payments in the event of a foreclosure resolution.
This is where an additional source of income would come in handy. Most of the time, the owner only needs a few hundred dollars to qualify. Homeowners might start a business as a means to create an additional source of income. But what kind of business? It should be a business that is easily accessible…a product or service that everyone needs…and that allows you to earn a significant income in 30 days or less.
It is important to understand that if you are early in the foreclosure process, you should have plenty of time to develop that additional source of income. Most of the time, homeowners panic when they receive a foreclosure notice and get nowhere. Don’t let that happen to you. Remember, you can accomplish more if you have a solid foreclosure plan.