For the homeowner who has missed a few mortgage payments the foreclosure process can start very quickly. During this stressful time it is critical you promptly take action to stop the foreclosure process and try to save or sell your home. Keep in mind that no one will help unless you ask. So, if you want to stop a foreclosure, you need to take responsibility and get the process moving as soon as possible.

Do Nothing

Exercise this option and eventually the sheriff shows up and escorts you to the sidewalk along with all your personal belongings.

Leave In The Middle Of The Night

You can run but you cannot hide. Decades before the "Information Age" a person may have been able to move across country and start over. Today more than ever before the practicality of heading for parts unknown is simply impractical. Aside from the difficulty in disappearing you may be breaking several laws as well.

Ask Family and/or Friends For Help

A small percentage of homeowners may be able to find help this way, yet their pride and embarrassment for getting into this situation in the first place prevents them from reaching out. Another consideration is the people you ask may not have the extra financial resources to help.

Negotiating With The Bank or Lender Yourself

Your lender is willing to stop the foreclosure process. That is a fact. All lenders hate foreclosing. Mortgage lenders typically lose money when they foreclose, since most foreclosed homes are worth less than the value of the mortgage. Plus, the foreclosure process is expensive to manage and is stressful for everyone. The problems facing most homeowners in handling the negotiation themselves is a lack of understanding regarding their rights and responsibilities, effective negotiating skills, and the amount of time involved. You are likely already consumed with scraping together funds wherever you can in the hopes of bringing your mortgage payments up to date. Where will you find the time to work with the bank or lender? This option is doable, but it is like swimming against the current. Eventually the pressure is going wear you down and just make the situation worse.

Hiring a Foreclosure Prevention Service

If you do decide to hire a firm, since negotiating with the lender to find the best solution is complicated and time consuming, practice due diligence and shop around. Depending on your situation and who your mortgage lender is, the subtleties of negotiations are critical to a successful outcome. You need someone who is experienced at foreclosure negotiation. The company that will help you stop foreclosure should present you in a way that convinces your lender that you are a responsible person and that you are capable of developing a plan and getting back on track.

The company you hire typically negotiates with the lender to repackage the loan so that the borrower can become current again. It will help save your credit, keep you in your home or sell your home, and appease your lender. This process has to happen pretty quickly, and could involve one or more of the following:

Loan modification - If you can currently make your regular payment, but you can't catch up with the past-due amount, the lender folds any past-due amounts, including interest and escrow, into the unpaid principal balance. This new amount will be re-amortized over a new period of time.

Payment forbearance - Here you are allowed to pay the overdue amount, plus penalties and interest, over a specified period of time.

Deed in lieu of foreclosure - This is where you are unable to pay for the house and you voluntarily give the house back to the lender. Be warned that you still have to pay back any difference between what you owe and what the house resold for. Not every lender will always accept this arrangement.

Sell your house - Some people exercise this option if they do not want to keep the home. Most homeowners want to keep their home and often choose this option if all else fails and they want to save their credit.

File for bankruptcy - This should only be used as a last resort because of the negative impact on your credit (up to ten years in some states). Keep in mind also filing for bankruptcy is much more difficult these days due to new laws recently passed.

In the end, there are a variety of considerations when you try to avoid foreclosure, so educate yourself and plan for the best resolution to the foreclosure process.

More info on your stop foreclosure information search:

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