Popular Methods To Keep From Losing Your Home To Foreclosure

By Author: Nick Adama
Total Articles: 197
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If you are a homeowner in foreclosure or having trouble making all your monthly home payments, you may be interested in knowing options get a lower payment. You can stop foreclosure, but it means your going have to start making payments on time and know what to do.

1) Talk to your lender

The most important thing you can do is stay in touch with your mortgage company. Don't keep them in the dark, let them know about your hardship and that you are not going to be able to meet your mortgage payments. Find out what options are available and keep updating your lender every month, especially if you are planning on missing a payment. If you want to stop foreclosure, make sure the lender knows of this and maybe they can help. Most mortgage companies would rather help you find a way to keep your home, instead of taking a loss with foreclosure. Lenders can lose thousands of dollars when they foreclose on a home, in fact, many lenders claim losses of over 50% when compared to a loan that is paid in full.

2) Try to get forgiveness on the past debt

If you have fallen behind on payments on your mortgage, ...
... apologize and ask the lender if it's possible to eliminate the debt and give you a fresh start. You'll want to keep the lender on your good side, so they will be willing to work with you. When you can start making your monthly payments, the bank may offer you forgiveness on what you previously owed.

3) Come up with some money

If your house is close to going to auction, the one sure way to save it is to come up with some money. In most cases, to stop a sale for sure, you'll need about two payments. This does not stop the foreclosure, but it may buy you time to find another solution. The lender does have the right to demand the full amount to bring your account current, so it may take some negotiation to stop a sale if you don't have enough to pay the arrears in full. Even if you come up with it at the last minute, the bank will usually accept it, if the auction hasn't happened.

4) Ask for a loan modification

Depending on your lender and the state you live, the bank may allow you to get a second mortgage and lower your monthly payments. The lender may even allow you to take the arrears and put them on the back end of the loan. This could extend the length of loan period, but at least you would be able to keep your home.

5) Have all your documentation on hand

If you are trying to stop foreclosure, you will have to provide documentation for the bank that proves you can afford to make the monthly payments on your home. If the bank is going to help you refinance, they are going to want proof that you can keep up with the monthly payments.

These are only a few ways to stay out of foreclosure and keep on track when trying to save you home on your own. As always, we recommend hiring a professional to help when possible, but if not, just follow these steps, along with others available on our blog. There are many ways to keep your home, but never forget to stay on top of the process and keep in touch with your lender.
Nick publishes daily articles on the ForeclosureFish website, which aims to educate homeowners on how they can stop foreclosure while they still have time and options available. Visit the site today to read more about preventing the loss of a home and recovering from a financial crisis, and download an e-book explaining the basics of how foreclosure works: http://www.foreclosurefish.com