Avoid Home Foreclosure

"Help! I need help to avoid home foreclosure." This is a common cry when someone is either having difficulty paying or is not able to pay his home mortgage payments.

Unfortunately, there is really only one way to avoid foreclosure and that is to pay your mortgage lender. Fortunately, you may have several options on how to pay your mortgage lender.

Home mortgage lenders make their money by making loans, servicing the loans, and earning interest on the loans. They do not make money from foreclosing on loans. In fact, foreclosing on a home loan usually costs the lender a large amount of money. The bottom line is that mortgage lenders do not want your home. They want your mortgage payments.

With the above in mind, if you are having problems paying your mortgage payments, call your mortgage lender. Depending on the policies of your lender and your situation, your lender has various options with which to help you. Several of the options are:

    - Your lender can give you more time to pay.

    - Your lender can allow you to skip a payment and add the payment on to the end of your mortgage payments.

    - If you agree, your lender can modify the terms of your mortgage.

    - Your lender can agree to a short sale of your home.

    - Your lender can agree to accept to a deed in lieu of foreclosure.

If your home lender is not inclined to work with you, you may want to consider a Chapter 13 bankruptcy whereby you may can ask a bankruptcy court to give you more time to pay your lender. Because of the bankruptcy laws, your lender is limited in what the lender can do to object to the court giving you more time. Normally, you will receive more time.

You do not have to wait until your home lender has started a foreclosure action to file a bankruptcy action. Instead, if you think that your mortgage lender is going to start a foreclosure against you, you can go ahead and file the bankruptcy to avoid home foreclosure. Please note that you do have to qualify to file a bankruptcy action and that you may not qualify.

This article is general information. For specific advice on foreclosure and bankruptcy, talk with a lawyer licensed in your state.

Stop! Don't blindly chase any option to stop foreclosure. See stop foreclosure options to learn what options you have in your situation. Remember, what works in one person's situation, may or may not work in your situation to stop, avoid, and prevent foreclosure. For more general information, see Stop Foreclosure - Five Options You Need To Know.

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