Non-Profit Organizations: A Solution for Homeowners in Financial Crisis

We are being inundated by the foreclosure crisis in the media. So many homes are in foreclosure status, and homeowners are suffering and struggling to make ends meet and keep up with an interest rate that keeps rising. We are all feeling the pinch of the rising gas and food cost. People that are barely making ends meet when the economy is relatively good are really struggling now. The government has stepped in and President Bush has signed a new housing rescue bill into law.

The Housing Bill has a fund worth an estimated three hundred billion with the Federal Housing Administration. This Bill has been set up to help homeowners to refinance mortgages and to pull the mortgage industry out of the downward spiral they have been experiencing. There are numerous non-profit organizations to help homeowners who are in jeopardy of losing their investment. Most homeowners will fall behind in their first year of occupancy, due to unforeseen financial challenges. The homeowner will spend the most money trying to purchase items for their new home and will sometimes dip into savings accounts to do this. When an unforeseen expense arises the homeowner will usually fall behind on their mortgage.

One non-profit organization that helps homeowners is The Rainy Day Foundation, it is an organization that provides financial assistance to people who find themselves behind on their mortgage payments. Their mission statement is "Protecting you from the unexpected." They provide emergency support to families, and also provide budget counseling to educate people and get them on the right track financially, they have programs such as the Education and Counseling program, Pre-purchase counseling, and Post-purchasing counseling programs.

CNN and Larry King had a program on about how to avoid foreclosure and the current mortgage crisis. He had several financial people on the program to discuss what to do if you are about to be in foreclosure situation. One point his guests focused on is to try to work something out with your lender before you are in over your head. They suggested a refinance option, or seek help from non profit organizations. Here are some practical ways to get yourself on track if you are falling behind on your mortgage.

1. Try to secure a loan or borrow from friends or family, if you are one payment behind it is easier to catch up and not fall further behind

2. Scale down on expenses, get rid of cable, reduce cell phone plan and get a lower monthly payment

3. Buy groceries and don't eat out

4. Don't buy clothes if you don't need them

5. Stop using credit cards, and use only in an emergency

6. Get a part time job if possible and use that money towards a payment

7. Conserve electricity turn off everything when you leave home, lower utility bill, means less coming out of your pocket

8. Reduce trips to the beauty salon, that includes manicures and pedicures

9. Only drive when you have to plan all your grocery shopping and errands when you are out so you do not have to make extra trips

10. Car pool and bring your lunch to work

The Rainy Day Foundation has helped thousands of people who are in a financial crisis; it is as simple as filling out an application and speaking with a counselor. Many of us think we would never be in that type of situation, but if you find yourself in need of some financial assistance, there are numerous non profit organizations that are willing to lend a hand.