©Vichaya Kiatying-Angsulee - freedigitalphotos

©Vichaya Kiatying-Angsulee – freedigitalphotos

Facing foreclosure is a stressful time in a homeowner’s life; the thought of losing a home is an unsettling one.  You took time finding the right place for you and your family.  You put the effort in getting it set up and furnished for your needs.   You probably looked at several other homes until you found your special one.  With these thoughts in mind, you may come to the conclusion that you don’t want to lose your home and you would like to fight foreclosure.  Read on to find out alternatives to foreclosure.

Negotiate, Negotiate, Negotiate
In almost all foreclosure cases, the first step is do go and negotiate with your mortgage lender.  The sooner you talk to your lender, the more likely it is that they can come up with a solid solution for you to avoid foreclosure.  Tell them about your situation and prove to them that you only fell temporally behind and you can stay on top of your payments if they can help you out.  The lender may be able to lower the interest rate on the mortgage for you or even extend the length of the mortgage term in order to lower the monthly payments.  This is the first step to finding an alternative to foreclosure.

Refinance
Depending on your financial situation and how long your money flow problems are going to last, you may want to consider refinancing your home.  If you still have good credit the interest rate on a new loan might be lower than your original mortgage rate.  Also if you have enough equity built up in your house you might be able to borrow money from that, in order to pay past due mortgage amounts.

Government Assistance
The federal or state government might be able to provide you will assistance if you want to stay in your home.  You do have to qualify for a lot of their programs, but it is worth looking into.  For instance, if you have an FHA insured loan, your lender may be able to get a one time payment from the FHA insurance fund that will bring your mortgage payments up to date.  Also you will want to look into your personal state laws and assistance programs, some can provide help to homeowners who want to avoid foreclosure.

Transfer ownership
If you have exhausted all options for staying in your home and avoiding foreclosure, you may want to consider giving up your home to stop the foreclosure.  Sometimes, to avoid a foreclosure, it means selling your home to pay off you debt.  This is way to get out of your mortgage payments and to keep a foreclosure off your credit rating.

Facing and fighting foreclosure can be an emotional and financial roller coaster.  Even if you feel like you have exhausted all your options for saving your home, make sure you talk to all knowledgeable people in the field of foreclosure, before giving up.  Sometimes people forget to talk to neighbors, who may have gone through similar situations and may have found a way to save their home that you did not think about.

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