How to Avoid Foreclosure

Foreclosure is the legal process which a owner's right to a property is terminated, usually due to default. Foreclosure is everyone's fear. Here are ways that may help you prevent foreclosure.

Difficulty: Moderate

Instructions

1. Ask your lender for Special Forbearance. The lender may be able to arrange a payment plan based on your situation. They may also be able to temporarily suspend your payments.

2. Try a Mortgage Modification. If you have enough equity, you may be able to refinance your mortgage and extend the term of your loan.

3. Try a Partial Claim where you can obtain an interest free loan from HUD to bring you up to date on your payments.

4. Talk to a Housing Counseling Agency to see if you qualify for any of the steps above. Also discuss these with your lender.

5. Use a Foreclosure Intervention Program which grants funds to borrowers and helps with negotiating with lenders.

6. Sell off assets such as stocks or personal property that can give you a lump sum you can use to catch up your mortgage payments. If you can get by with one car, sell the second one. This will lower your insurance payments also.

7. Cut down your expenses. Find ways to spend less, such as eating at home and using coupons. Coupons can save you a lot of money.

8. Get a second job. Maybe get a second job long enough to get caught up with your mortgage payments. Look for a part time job.

Tips & Warnings

• Talking with your lender would be very beneficial and they may be able to help you in some way.
• Do not sign anything unless you understand. Ask questions until you do understand as things can become confusing.

Resources

• How to Work From Home Free Ideas
• How to Lower Your Telephone Bill
• How to Maximize Your Car Insurance Savings

[our5kids]

on 3/28/2009 Great tips thank you I think that we can all use a little advice in this economy thank you!!5*.

[sonni57]

on 3/25/2009 Good info on how to avoid foreclosure.

[tundranut]

on 3/23/2009 Thanks for the article; good info. 5*