My research into foreclosures among African American homeowners show many give up to soon. Yes, many settle for having the stigma of having a foreclosure on their credit record without trying all available solutions.

The reasons come from a lack of knowledge from the homeowner and even from many counselors who they go to for help. Many counselors and loan officers are so overwhelmed many miss, overlook or (because of limited time) neglect telling homeowners of all available solutions.

I'll give the top seven ways to avoid foreclosure. I am convinced if more homeowners knew these answers it would drastically cut the rate of foreclosures in the African American community. As always the key to using these solutions is time. The quicker you take action the more chance you'll have of avoiding a foreclosure.

Don't make the mistake of trying one action. If one doesn't work out the next may. Commitment to trying all these solutions before even thinking about giving into foreclosure. Make sure you tell this to anyone you past this information on to.

According to a recent University of California study, 1 out of 5 people will know of someone who will be in danger of losing there home in the next two years. Knowing this information could make the difference in someone losing or keeping their homes and their good credit rating.

Even if you're not experiencing payment problems now read this list, you never know when you may need use them to help someone you know. Better yet, send other relatives, friends and acquaintances to this page. You never know who may need this information.

Here's some key ways to avoid foreclosure. For further information, contact a knowledgeable housing counselor.

1. Forbearance: This is where a lender schedules increased monthly payments for a homeowner in trouble. This can allow you to catch up on past payments. Lenders usually ask for one and a half times the original payment amount and a large up-front payment. In addition, lenders normally want the loan caught up in 12 to 18 months. Be aware that in when you accept a forbearance agreement, you may also be giving up your right to sue. Consult legal counsel for further clarification.

2. Modification: Loan modification is when your lender changes the terms of your loan. For example, they can reduce the interest rate or extend the term of the loan. Often a loan modification could work better than a forbearance or repayment plan because of the lower monthly payment. There is normally a fee to do a modification, this fee rolls into the loan.

3. Deed in Lieu of Foreclosure: With this action the deed transfers back to the lender. In return they cancel the mortgage debt. This solution is good for the homeowner in trouble if they have little or no equity in the home. This is not a good choice when a home owner has large equity. With some types of loans and under certain conditions, lenders have paid homeowners to sign a deed in lieu. Many lenders have found Deeds in Lieu of Foreclosure could save time and cost.

4. Refinance: Refinancing usually demands a large equity in the home, a good payment record, and a healthy debt to income ratio. This works best for homeowners before they miss a payment.

5. Temporary Injunction: A temporary injunction is a court order that stops the foreclosure. Seek a temporary injunction only when modification, forbearance or other loan workout plan has failed. In addition, this could work if the homeowner can prove their financial situation has improved. Seek qualified legal counsel for this procedure.

6. Bankruptcy: Use this as a last resort. Because it will affect your credit for seven years.However, this is a legal act that will stop or postpone a mortgage foreclosure temporarily. Consult qualified legal counsel for this step.

7. Repayment Plan: This is for homeowners who experience a temporary financial problem. This workout plan helps reinstate the mortgage by adding partial payments to the current payment.

To qualify for this the homeowner must be able to afford the higher payment for the term the lender decides.

Conclusion

These are but a sample of the most popular and effective ways to avoid foreclosure. There are many more ways I will go into later such as Interest Payment Assistance Subsidies, Advance Claim, Delinquency workout agreements and more.

The two biggest mistakes most African American homeowners make is

1. Taking too long to seek help and ...

2. Taking too long to take action.

Hopefully, this information will help homeowners take action who may otherwise have lost there home - because of not taking action.

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