It doesn't take much to lose your financial footing. Sadly, even a substantial savings account might not be enough to save you. Unemployment, life-threatening illnesses, and even divorce can quickly wipe out any savings you might have had. If financial hardships have put you in danger of losing your home, there are a few things you can do to protect your investment. Here are three tips that will help you avoid foreclosure.

Request a Forbearance

When you're faced with financial hardship, you want to act fast to protect your home. Before your home loan goes into default, contact the lender and request a forbearance. With a forbearance, your mortgage payments will be suspended for a few months, which may give you enough time to recover from the financial hardship you're experiencing. It's important to note that most lenders will only consider a forbearance if your hardship is expected to be a short-term event.You should also know that most mortgage companies won't approve a forbearance if you are in arrears on your loan payments. 

Consolidate Your Debt

If you have a considerable amount of credit card debt, you might want to consider a debt consolidation loan. Once you're approved for the loan, your credit card debt will be paid off and your bills will be consolidated into one monthly payment. The benefit to this type of loan is that the payment is usually lower, which will give you more money each month to put towards your mortgage. If you do take out a debt consolidation loan, you should avoid taking on additional debt.

Speak to an Attorney

If you're in danger of having your home go into foreclosure, and your financial hardship is not a short-term event, you should sit down with an attorney as soon as possible. Bankruptcy may allow you to restructure your home loan, which will lower your monthly payments so you can continue living in your home. Under chapter 13 bankruptcy, if you've fallen behind on your house payments, you can enter into an agreement to repay the arrears payments over time. 

If you've fallen on hard times, and are in danger of having your home foreclosed on, options are available to you. The information provided here will help you avoid the loss of your home. For more information, be sure to consult with a bankruptcy attorney in your area, such as Jeffrey S Arnold Attorney At Law P.C