How to avoid foreclosure

Paying your mortgage is becoming increasely difficult. Many homeowners are facing foreclosure, which is the last thing anyone want to do. If you do not pay your monthly mortgage payment, you are technically in default on your mortgage. State laws vary, but generally, a loan that is as little as 90 days delinquent can be considered in foreclosure. To avoid foreclosure, please read the following tips.

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Difficulty: Moderate

**** INSTRUCTIONS****

Step1
At the first sign, that you are having difficulties to pay your mortgage contact your lender, as the further behind you are, the harder it will be to reinstate your loan and the more likely that you will lose your house. Lenders do not want to see you lose your house, therefore they are willing to work with you, and they have options to help borrowers through difficult financial times.
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Step2
The Lender have alternatives such as: * Giving you time to make your payment, by working out a repayment plan that is affordable for you. This is called forbearance. * Modifying your mortgage is another alternative, this allows you to refinance at a lower interest rate, allowing you to catch up on your mortgage monthly payments to a more affordable level.
*Your mortgage company may be able to work with you to obtain an interest free loan from HUD to bring your mortgage current, which will pay back the missed payments. This is called a partial claim.
* Consider a short sale if your house is worth less than it owed to the lender. This will allow you to sell your property and pay off your mortgage loan to avoid foreclosure and damage to your credit rating. This is called a pre-foreclosure redeemed.
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Step3
Another way is to voluntarily "give back" your property to the mortgage company. The homeowner give the lender a properly prepared and notarized deed, and the lender forgives the mortgage, effectively canceling the foreclosure action. This won't save your house, but it will help your chances of getting another mortgage loan in the future. This is called "Deed in Lieu of Foreclosure"

Tips & Warnings
*Contacting the lender early give you more options
*Know your mortgage rights.
*Understand foreclosure prevention options.
*Try to avoid getting a "notice of default", as your options are now limited. You will now have to pay the costs of filing the foreclosure and stop the foreclosure
*Don't lose your house to foreclosure recovery scams
*Avoid foreclosure prevention companies.
*Check with a lawyer or your mortgage company before entering into any deal involving your home
*Don't sign any papers you don't fully understand