Option #2: Borrow money from family or friends

Many are too proud to ask friends & family for a loan, but if you’ve made it this far into the foreclosure process, the fact is that most of your alternatives are much worse for your future. Think about it, your family and close friends may be inconvenienced by this, but wouldn’t they rather see your healthy survival than not loan you some of their savings? If not, you’ve got to ask yourself how good of a friend or family member they really are.

If you have this option, take the loan as long as there is little or no interest. All of your other options really are worse than this one, as this one only affects your pride, and others affect your future financial well being.

One word of caution: If you know that you won’t be able to pay them back by a certain date, be completely honest with them and proactive enough to tell them so. Open honesty is the ONLY policy for choosing this option.

Pros:

Low or No interest rate, flexible payback period. Your neighbors stay uninformed.

Cons:

It is another loan on top of your existing loan, so it really does hurt you more than help for the long run. Plus, once again, your credit will still retain all the bad items up to date. Also, your whole family will surely know about this, so you’ll be taking a large hit in your dignity.

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