One of the most stressful things to deal with is the possibility of losing your home. Unfortunately, there are many people facing this threat.

What many people are not aware of is the fact that there are many programs available to help prevent foreclosure. Your lender will usually try to set you up with any options available. It is far less expensive for your lender to help you avoid foreclosure, than to have to take your home away.

The great news is, just because you are three months behind on your mortgage, does not mean that you will lose your most prized possession. You can still hold on to your home. However, the most important thing you can do to prevent losing your home is simply to contact your lender. They are usually willing to work out something with you, as long as they are aware that you truly want to make things right.

Here are two options available for you to utilize to help you save your home.

Loan Modification

If you are able to currently make your regular mortgage payments, but are having a difficult time catching up from the past-due amount, you can negotiate with your lender to fold any past-due amounts into the unpaid principal balance. This would include interest and escrow, and the new amount will be re-amortized over a new period of time.

If you are unable to make payments at your current rate, negotiations can be made with your lender to extend your loan balance for a longer period of time, which will make the loan amount at a more affordable level.

Forbearance Agreements

Let's face it, temporary financial hardships can ultimately devastate your financial situation. Unfortunately, people who live paycheck to paycheck will have a very hard time "catching up". This is especially true with house payments. Because you are not allowed to fall very far behind on a house payment, never mind the fact that you have paid faithfully for the last ten years prior to those last three months of hardship, your house is at risk.

Many lenders will offer you a Mortgage Forbearance Agreement. This means they will reduce or delay payments for a specific amount of time, and then at the end of that time, arrangements will be made to bring the account current. Many times, the lender will cease legal actions, with the understanding that you will bring your account current at a specific time. Lenders may combine your Forbearance with a Reinstatement or Repayment Plan, as long as they are comfortable you have the ability and means to pay back the amount due to bring your account current.

Another type of Forbearance is "Special Mortgage Forbearance Agreements". This is a written plan to help you repay your missed payments to avoid foreclosure. With this type of Forbearance, you may be allowed to postpone your monthly payments for up to four months.

Although it is sometimes very easy to set up a Forbearance Agreement with your lender, your lender could make it very difficult. This is why it would be beneficial to contact a third party to help protect your needs and rights. Don't wait until you lose your home. Talk to your lender, and learn the options available to you to help you protect your home.

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