Stop Foreclosure

The best way for consumers to avoid foreclosure is to prevent the filing of a Notice of Default. If you know that you will be unable to meet your mortgage obligation, the first thing you should do is call your lender. Lenders do not want to foreclose but if necessary wil
l file a Notice of Default to legally protect their interests.

Be sure not to ignore letters from your lender because a lack of a response will make the situation worse, not better. Once a lender files
a Notice of Default, your options are very limited. It is much better
for you to call your lender before falling behind on your payments because lenders are reluctant to work out repayment schedules after foreclosure proceedings have been filed.

Once a Notice of Default has been filed, you will have a certain time period to bring the payments current and stop the foreclosure. You
will also have to pay the lender's costs of filing the foreclosure. This
is called reinstatement of your loan.

If you are unable to make up the missed payments and the lender
will not work out a solution for you, here are a few other options
to stop the foreclosure:

Sell Your Home

Find a reputable real estate agent and immediately place you home
on the market. You may not be able to sell it for an amount that you would hope to get, but chances are you will do better than if the home was sold at auction.

Consider a Short Sale

If your home is worth less than the amount owed on it, you might
be a good candidate for a short sale. A short sale may affect your credit but it is not as bad as a foreclosure. Your real estate agent will need to negotiate with your lender to determine if the lender will accept a short sale, called a pre-foreclosure redeemed.

Sign a Deed-in-Lieu of Foreclosure

A Deed-in-Lieu of Foreclosure is deeding the home back to the
lender. The homeowner gives the lender a legally prepared and notarized deed, and the lender then forgives the mortgage which effectively cancels the foreclosure action.

You might also work out an arrangement with the lender where
you can remain in the home until you find a place to move into.