With sharply higher mortgage rates comes an increase in home foreclosures as homeowners find that they simply cannot afford the higher mortgage payments. Worse for them, no mortgage company will allow them to refinance if their credit standing is precarious. Thus, the number of foreclosures is rising across many housing sectors spelling opportunity for savvy home investors. Are you ready to jump in? If so, it isn't always thing to do, but it can be done as outlined below.

Chances are if a homeowner is faced with a foreclosure, he may be receptive to you offering to buy his home to 'rescue' him from what will inevitably be a credit killing experience. If you play it right, you could offer to take over payments or simply buy the home at a price that covers what is owed on the mortgage. In effect, the owner loses his down payment and equity in the home, but he gets to keep his all important credit rating and he will have the opportunity to purchase a home again once his finances straighten out.

On the other hand, if a homeowner is seriously behind on payments and the home's value has not kept up, his mortgage lender could squash any deal that you make. The mortgage company could end up losing tens of thousands of dollars on the sale, especially if your offer doesn't pay off the outstanding mortgage. Yes, the homeowner is responsible for the loan deficiency but if he doesn't have the money now, what is the likelihood he will have the fund later? In that case, the mortgage company may authorize that the courts proceed with a foreclosure to remedy the situation.

A compromise plan could have you still buying the home if your offer effectively is almost enough money to cover the outstanding mortgage. If it falls let's say five thousand dollars short, the mortgage company could be interested in entertaining your offer. Why is that? For several reasons including:

--Foreclosure proceedings are expensive. The mortgage company must hire a lawyer and pay filing fees. In addition, thousands of dollars in late payments could be lost forever. Your deal would recover some of that money.

--Property management is a pain. If the home is recovered via foreclosure, the mortgage company must still maintain it until it is sold. Taxes, maintenance, repairs can add thousands more to the cost of the home.

Also, if the local housing market truly stinks then your offer may be the only one that a mortgage company could expect. Therefore, understand the market and set your offer at a price to make the most of your benefit.

More info on your stop foreclosure information search:

Get Free Foreclosure Advice and Free Refinance Quotes
Get your free on-line foreclosure refinance quote and free advice from foreclosure mitigation specialist in minutes. Compare real offers from top national subprime and hard money lenders... more...

Foreclosure Is Never Eminent
Foreclosure is legal action taken by a mortgage note holder against a mortgagor who defaulted on their note. If a home owner is unable to make the monthly mortgage payment as agreed, the bank or mortgagee has the right to file a petition for foreclosure at the county court having jurisdiction. The ... more...

Foreclosure Secrets Revealed - Six Secrets You Absolutely Must Know About Foreclosures
Legal Disclaimer: Author is a licensed real estate agent and is not an attorney. This information is not intended as any form of legal advice. You should always seek the advice of competent licensed professionals. I have talked with or helped hundreds of families who have gone through foreclosure ... more...

Stop Foreclosure With Five Important Steps
Americans are facing financial hardships at record paces and preventing their home from going into foreclosure has never been harder. The most obvious problem they face is how to stop foreclosure, but they must also address their tarnished credit, a contracting mortgage market, their adjustable ... more...

Can a Second Mortgage Declare Foreclosure Before the First?
In most cases of foreclosure, it is the first mortgage company that initiates the process. The second mortgage may file its own foreclosure in order to protect its interest in the property, but even this is somewhat uncommon. The second lender would much rather work with the homeowners to find a ... more...