How to Avoid Foreclosure - Stop Foreclosure Now

If you are having problems keeping up with your mortgage payments then you need to follow these great tips so you can stay in your home and avoid a foreclosure.

Difficulty: Moderately Challenging

Instructions

1. Are you having trouble keeping up with your mortgage payments? Are you behind on payments or have you received a notice from your lender asking you to contact them? Are you wondering how to avoid foreclosure and keep your home?

2. Don't ignore the letters your lender is sending you. It doesn't matter if you are embarrassed whatever you do, don't ignore your lender, this will make the situation worse. Contact your lender today and see if they are will to work with you. The lender doesn't want your house, they want your payments. Ignoring the problem won't make it go away.
   
   The further you get behind in payments the harder it will be for you to catch up and reinstate your loan. If you plan on keeping your house then do whatever you can to get caught up. Respond to everything your lender sends you. Failure to open mail from your lender isn't an acceptable excuse in foreclosure court. Depending on your circumstances, there are some options your lender might propose:
   
   * Forbearance. Your lender may give you time to make up payments. The lender may agree to postpone taking legal action and let you get caught up with a repayment plan that you can afford.
   
   * Debt Forgiveness. If you are a payment or two behind do to a hardship, your lender may be willing to forgive the missed payment. This is a long shot.
   
   * Loan Modification. Your lender may be willing to modify your existing loan to better suit your situation. This includes locking in an adjustable rate.
   
   * Refinance Existing Loan. Your lender may be willing to refinance your loan and your missed payments to the loan balance.

3. Know what your mortgage rights are. Find your original loan documents and read them, even the find print. Find out exactly what you signed.

4. Get your spending under control. Cut back where ever possible. Cut out all non essential expenses. It's essential that you make your mortgage payments. Cancel cable, the gym membership, entertainment expenses, and all non-secured debt payments.

5. Find money and get a 2nd job. Sell off everything that's not nailed down and get caught up with your mortgage payments. Sell your second car, jewelry, camera's, sell anything you can to get caught up. Get a 2nd job if you can. This shows the lender you are serious about getting caught up with your mortgage.

Resources

• Can I get an FHA Loan?
• Refi to a worry-free $300,000 for $1,848/mo fixed