Ways to avoid Foreclosure A Look at the Foreclosure Process Foreclosure Relief Options The HOPE for Homeowners Program How to Recognize Foreclosure Rescue Scams

Avoiding Foreclosure

The prospect of losing homeownership is a frightening reality for many Americans these days. While it may be tempting to bury your head in the ground and wait for troubled times to pass, doing nothing is the worst possible thing you can do when you are having difficulty paying your mortgage. Below are several things you can do that may prevent home foreclosure.

Communicate with your Lender
It is a good idea to contact your mortgage lender even before you miss a payment (see Working with Creditors). Mortgage lenders lose money each time they have to foreclose on a property; therefore, most lenders are willing to work out some kind of arrangement with homeowners to keep them in their homes. It is probably not necessary to hire someone to talk to your lender for you, so you can save money by talking to your lender directly instead of going through a third party. Some of the options your mortgage lender may offer include:

Save Money

Go over your budget and distinguish your wants from your needs. By eliminating the things that you don’t really need to survive, you can save a substantial amount of money that may help you avoid foreclosure. By putting aside a little money every month, you can be more prepared for emergencies that may make it difficult to pay your bills, such as the loss of a job or serious injury.

Be Wary of Deals that Sound Too Good to be True....they usually are
Companies that promise to rescue you from foreclosure are often looking for a way to take advantage of desperate homeowners. If you are seeking help from a debt management agency, be sure to do your homework to find a reputable agency.

Make sure you thoroughly understand the terms of any contract that you sign. It is a good idea to have an attorney look over any contracts before you sign anything. Some unscrupulous companies may tell you that you are signing a refinancing contract, when in reality, you are signing over the deed of your house.

If you need assistance in coming up with a plan to save your home from foreclosure, contact a trusted counseling agency, like the Homeownership Preservation Foundation. You can also check with www.HUD.gov to make sureyour counselor is approved.

Understand the Foreclosure Laws in your State
Foreclosure laws vary from state to state. Some legal terms that you should be familiar with include:

 You can find more information about foreclosure laws in your state by consulting a bankruptcy attorney and checking online resources, like http://www.foreclosurelaw.org/.