How Foreclosure on Mortgage Loans is Easily Prevented

When you own a home and it has been difficult making your monthly payments, you probably lay awake at night thinking about foreclosure, mortgage loans, falling behind, catching up, and saving your house. Maybe you've heard about things like short sales or mortgage loan modifications but you really don't know much about them.

If you are at risk of losing your home because of unemployment, or even if you have a steady income but just can't seem to make ends meet each month, the first thing you should do is find a HUD certified credit counselor who can review your finances, help you work out a budget, and explain what programs may be available to help you, such as:

• The Treasury Department's $2 billion Hardest Hit Fund to help unemployed workers keep their homes
• A planned $1 billion program from HUD called Emergency Homeowners Loan Program which will provide benefits for up to 2 years if you are an unemployed home owner.
• Mortgage Loan Modifications - programs will vary by lender, but you may be able to shave a considerable amount off your monthly mortgage if you can negotiate a modification with your lender.

Communication is Key

Consumer experiences vary by mortgage lender, but most lenders are willing to work with their borrowers to find a reasonable solution that will allow them to stay in their homes.

• Call your lender as soon as you think you won't be able to make your mortgage payment and explain the reason why.
• Ask about programs to help you catch up again.
• Do your best never to miss more than 2 payments.

Other Options

If you cannot afford to keep your home and are trying to sell it but the market has declined below the value of your mortgage, contact your lender and discuss a short sale with them. In a short sale the lender agrees to let you sell your house for less than what is owed.

• A Deed-In-Lieu of foreclosure is another option you may want to pursue when you know you cannot afford to stay (or can't stay because the only job you could find is 400 miles away) yet you can't sell your house.
• You agree to sign the deed over to your lender, (usually leaving the home empty and in broom-swept condition) and the lender does not pursue a foreclosure.

Get Legal Help

Loan modifications, short sales, deed-in-lieu of foreclosure are all relatively complex financial transactions where you would be smart to get legal assistance. Someone on your side, who can represent your interests and make sure you are not being taken advantage of. There are ways to prevent foreclosure; call an attorney today to discuss which one works best for you.