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Step 1
Gather as much information about your current financial status as you can. Write down all your monthly bills and expenses so you can see why you're having trouble. Help to stop foreclosure before it becomes a problem by taking charge of your finances now. Cut costs where you can and see if that allows you to take care of your mortgage payment. Take this time to learn the differences between thing you want and things you need.
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Step 2
Refinance your loan. This works best if you still have good credit and haven't missed any mortgage payments yet. To refinance, visit local banks and lenders and apply for refinancing. You're likely to find a better deal than your current mortgage, which can help to stop foreclosure before it even begins.
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Step 3
Renegotiate the terms of your current mortgage. No matter what you may think, your bank does not want your house. They'd much prefer to make a deal with you that will allow you to keep paying your mortgage and help to stop foreclosure entirely. After all, foreclosure does nothing but leave the bank with another house to try and sell in a tight market. Sit down with your mortgage lender and let them know what you can afford to pay. You may be surprised at what your options.
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Step 4
Take advantage of Obama's Federal Mortgage Loan Modification program. Under this program, if you've fallen behind on the mortgage of your primary residence, and the home is worth less than $729,000 you are eligible for federal loan assistance to help stop foreclosure. Under this program, the federal government will support your bank if they lower your monthly payment to less than 31% of your gross income. Approach your bank today if this sounds right for you.
