The laws governing foreclosure are different according to the state in which you live; however, there are several tips to follow on avoiding home foreclosure
. To learn the options available in your state including federal help you need to consult with a qualified foreclosure attorney
. They will be able to give you various options and even do the negotiating for you to ensure your rights are preserved during the entire process.
Of course, the best way to avoid foreclosure is to work with the lending company before you receive a Notice of Default. In some cases, nothing can be accomplished prior to the filing though, as lenders want to receive all the money due them on the loan.
In some cases, your lender can wait before taking legal action if you can come to terms on a payment arraignment, some will even allow you to miss a payment or two if you have a good reason that you are behind and you can show proof that you will be able to begin making your payments on time after this time period.
You can ask for a modification of the terms of your loan. Remember, this will not be an idea that the lender is going to want. The reason being, they will have to lower your monthly payments so you can afford your mortgage payments. In these cases, the bank or lending company will lose money.
Refinancing is another option; however, you may not meet the requirements to start all over again with a new loan, which is in essence what this loan actually is.
You can also sell your home prior to foreclosure. IF this is an option, a foreclosure attorney
will be able to help you with all the legal papers that need to be filed especially if you wish to go with a short sale
, as once again the lender will have to accept less than the original loan.