How to avoid foreclosure

AUGUSTA, Ga. - You hear about the tough economy almost every where you go these days from unemployment to home foreclosures.

NBC Augusta 26 News is committed to doing more than reporting the bad news; we want to help you find solutions.

If you're in danger of losing your home it can be overwhelming. Consumer Credit Counseling in Augusta says they have seen a big jump in clients looking for advice on how to handle missed mortgage payments.

One of their educator's Cindy Tesch says there are some steps you should take if you fall behind on your mortgage - most importantly you need to devise a payment plan. But to do that Tesch says you have to confront your problem and that means confronting your mortgage company.

"Most consumers are scared or afraid because they don't know what their mortgage company is going to tell them. So you want to stay in contact with the mortgage company," Tesch said.

Tesch says mortgage companies are very willing to work with you. Something that's really important to keep in mind -- once your payment plan is set up you must make cuts to your budget because each month you will be paying your regular mortgage plus your back mortgage.

"If you really want to keep the home, look at the budget, see what is absolutely necessity and then cut out what isn't. For just the time so you can get caught up on that mortgage," Tesch said.

You may even consider selling certain assets -- like a car if your family has two cars but can survive on one.

For help budgeting hit the web. Tesch recommends CCCSAugusta.org. Under the tools tab you'll find a budget worksheet that will calculate your monthly expenses. But cutting may not be enough.

"A consumer may need to get a second job or work extra hours in order to increase their income," Tesch said.

Two other options Tesch suggests -- cutting back on how much you put into your 401k plan, especially if you're younger and using your tax refund. Both of these are good ways to help you catch up on your mortgage.

Most of those payment plans are set up for a 6 to 12 month period. So the cuts you make to your budget likely won't have to be long-term.

For information on setting up that kind of plan contact the Consumer Credit Counseling Service at (706) 736-2090. People in Aiken can find help by calling (803) 441-8685.