As we’ve all learned, it is nearly impossible to live life without experiencing one hardship or another. In many cases, an unexpected economic change can jeopardize your ability to meet mortgage obligations and increases your risk of foreclosure. Data from the Ohio Housing Finance Agency finds that the most common family crises that threaten housing stability are unemployment, underemployment, medical costs, divorce, and a death of a family member. Unfortunately, few of these major life events can be effectively predicted or prepared for. 
If you find yourself struggling to pay your mortgage, there are concrete steps you can take to minimize the risk of foreclosure. One of the first steps you should take is to call Save the Dream Ohio at 1-888-404-4674 for a referral to a no-cost, qualified housing counselor in your area. Early intervention from an attorney can be a vital resource for saving your home; Ohio’s free legal services from Ohio Legal Aid, Ohio Poverty Law Center, and ProSeniors Inc. are a convenient and affordable way for many working families to access the supremely qualified lawyers that are often otherwise out of reach.
Family and Consumer Sciences (FCS) Educators in county OSU Extension Offices are able to assist struggling families as they are trained to provide guidance on healthy finances, healthy relationships, and healthy people. Financial stress can take its toll on relationships and while also leading to serious physical health issues. Learning ways to deal with stressors, such as those stemming from foreclosure, can go a long way towards regaining control of your life. Local county FCS Educators can be located by typing in a browser the name of your county followed by “osu.edu.” An example is www.greene.osu.edu.
Be ready to discuss with the housing counselor or attorney you contact your current housing situation. The professional you speak with will need to ask you some specific questions about your finances. Be ready to make the phone call to your local assistance person by gathering and placing in order by dates such things as utility bills, pay stubs, tax returns and bank statements or receipts of mortgage payments you have made. A folder or box with all your paperwork in one place helps you stay organized through the process of many months.
The process will call for changes in your money management. You will likely be asked to develop a budget or spending plan and you need to stick to it. Extension Educators can assist you with this task. The Educator can help you identify needs versus wants and set financial goals that are Specific, Measurable, Attainable, Realistic, and Time-bound (SMART). When goals are written down and SMART, you are much more likely to reach them. Sacrifices will need to be made to bring spending in line with income so prioritizing your spending is involved as well.
Next week’s blog will address whether you should contact your mortgage servicer and following weekly topics will discuss other available options, loan modifications, and explain what a reinstatement is.
