In the last few years, crowdfunding has turned into a very popular option for people looking to raise money for one reason or another. More often than not, crowdfunding is used to either fund a new business idea, or to help pay for an unexpected surgery/procedure.
More and more people are getting creative with crowdfunding options for other financial goals as well. An unexpected health issue is worthy of a campaign, so can a huge financial crisis such as facing foreclosure be a cause people will support? If crafted correctly and marketed well, a crowdfunding campaign definitely can help. Here is how crowdfunding can help someone get enough money to avoid foreclosure.
A Time of Need
Facing homelessness is one of the scariest things a person can go through. Foreclosure can happen to people for a variety of reasons. Sometimes, people are facing foreclosure because they lose their job at the worst possible time. Others might be going through health issues that are completely out of their control.
It is a very humbling experience for anyone who has to go through a foreclosure. It can be even more humbling to ask for help. People who are struggling need to remember that there are a lot of people out there who are willing to help if they know the story on what happened. Instead of asking each and every person directly, crowdfunding can be a more passive way to ask for help without coming off as too needy. Backers can make donations with their name, or completely anonymously if they prefer.
When the future looks bleak, a crowdfunding campaign looks like a move that should be made. They are pretty much free to set up in most cases, and the worst case scenario is that a person still has no money to help save the home. Best case scenario, a person can start to see the light at the end of the tunnel by getting back into control of their finances.
Crafting The Perfect Campaign
The first step is figuring out which type of campaign to put together. Most people facing this type of issue will be looking for a crowdfunding campaign that is completely donation based. That means that there is no expectation to provide some type of return later on down the road. A return is still an option as well though, as some people might be looking to make an investment in someone else. This cuts into the amount of money made, but might yield better results from strangers.
Since crowdfunding has turned into a popular way to get money, it is becoming more and more competitive to actually get money from backers. They have countless options to give money to, so they need to have a reason why a particular campaign is more important than others.
Marketing is a huge part of crowdfunding in 2019. A person needs to be able to clearly state exactly what they’re going through in order to paint the perfect picture. If someone is going through a particularly hard time that is completely out of their control, it needs to be relayed in at least a written story. The power of pictures and video can also be very beneficial. Without coming off as someone who is truly in need, some might be hesitant to just give their money away.
The biggest challenge a lot of people face, according to refinancegold.com, is that they can’t market the same way that a business with money can. Usually, these types of crowdfunding campaigns usually start out with friends and family seeing them. If it is a particularly difficult situation, it could possibly be shared on social media and those who are not even connected to the person will began to donate as well. The ones that explode like this mostly happen out of luck. No true marketing was done.
Hope shouldn’t be lost for people who don’t know how to market a campaign. What is working for people who do not have the money or the knowledge to properly market their crowdfunding campaign is that there are a lot of people who are more than willing to give in acts of kindness. It’s going to be a lot harder to get money to cover a foreclosure due to money mismanagement, but for heartbreaking reasons, they can definitely do well. That’s why being truthful about the predicament is key.
Understanding the Crowdfunding Timeline
Once foreclosure becomes a realistic outcome, the clock is already ticking. A person can buy some time to ask for an extension before the house is put up for auction, but more will only have a few months to come up with the funds necessary to save their home.
This is important to keep in mind because crowdfunding campaigns are typically 30 or 60 days long. Some platforms will pay out as they go, but many will not pay out until the very end. That means even if the campaign is successful, it could be months before the money is actually free to be used.
Presenting this information to the lender is the best way to get a bit of an extension. If they know that an active campaign is going on where money might be coming in, they usually will be able to wait a little.
Is Crowdfunding The Right Decision During A Foreclosure?
The closer a person gets to losing their home, the more desperate they usually are. No one enjoys asking friends, family and complete strangers for money to help them out of a financial crisis, but the alternative is not having a home to live in. For that reason, crowdfunding should be attempted.
With little risk involved with a campaign, every little bit of money raised can help out. People just need to realize that a campaign with very little effort put into it is likely not going to reach its goal. There are so many other people using crowdfunding these days that a campaign can easily get lost in the shuffle.