How to Stop a Home Foreclosure Listing

A homeowner never wants to face foreclosure on a home. There are many circumstances that can result in a homeowner falling behind with the mortgage payments--being laid off from work, having an illness or injury preventing gainful employment and having high medical bills. Fortunately, there are steps that can be taken to keep your house.

Difficulty:

Moderate

Instructions

1. Ask for help as soon as you realize that you are facing the possibility of falling behind on your mortgage payments. Too many homeowners wait until after they have a problem paying their mortgage, to contact the lender. Call your lender to explain your personal circumstances and why you believe that you will soon be unable to keep up with your house payments. If you explain your circumstances before there is a problem, your lender is more likely to work with you for a solution.

2. Contact your lender as soon as you are notified that you are facing foreclosure to determine your options. Ask your lender representative if he is willing to work with you so that you can save your house. Some lenders will offer you a forbearance if they believe that the difficulty you are facing in paying your mortgage is only temporary. Lenders might also offer to reduce your mortgage payments or change the terms of your mortgage in order to make your payments more manageable.

3. Check to see if you are eligible to refinance your mortgage or to apply for a consolidation loan. If you had excellent credit until you started to default on your mortgage, it might be possible to refinance your home or to apply for a debt consolidation loan that would include the balance of your home mortgage. Speak with your lender as well as other lenders in order to explore this option.

4. Discuss the possibility of a short sale with your lender. This option will not help you to save your home but can help you to avoid having a foreclosure listing on your credit record. A short sale occurs when you owe the bank more than the current value of your house. In this type of sale, a lender will accept less than your current balance on your mortgage as payment in full. The lender will negotiate terms with you as well as the buyer of your home.

5. Sell your house if you are able to sell it quickly and for the amount that you owe the bank. This option does not always work well. The housing market can sometimes be slow and sellers are often unable to receive their asking price. If you are able to sell your house quickly, you can stop a foreclosure listing.