How To Stop Foreclosure

Stop foreclosure when you are late on your mortgage payments

• Forbearance Agreement With Your Lender.
  If you or your spouse has suffered a temporary financial hardship, your lender may be willing to enter into a forbearance agreement. A forbearance agreement allows for a temporary change in your mortgage contract. The changes may consist of temporarily lowering, or eliminating your payments for a pre-determined period of time. For your lender to agree to a forebearance you must convince them that your financial hardship is only temporary and that you will be able to make your regular mortgage payments in the future.



• Ask Your Lender To Consider A Loan Modification.
  A loan modification is similar to a forbearance agreement. The difference is that a loan modification is a permanent change to your loan. Loan modifications can lower your payment by extending the term of the loan; often incorporating delinquent payments into the loan modification.



• Offering A “Deed In Lieu” Of Foreclosure.
  A “Deed In Lieu” allows you to offer your property's deed back to your lender in order to prevent foreclosure. You are simply giving the property back to the lender in order to avoid foreclosure. Most lenders will take this option, especially if you have equity in your property. Although a simple solution, we do not recommend it if you have equity in your home.



• Refinancing Your Loan.
  For people with exceptional credit it may be possible to refinance your mortgage for a lower interest rate and/or lower monthly payment. But if you have had a few late payments they may have already been recorded on your credit report making it near impossible to get a better rate/mortgage payment.



• Sell Your Home.
  If you have equity in your home and your financial position is unlikely to change in the near future selling your home is often your best option. You are not further increasing your debt, nor are you extending your mortgage payment (which also increases your debt). You are able to salvage your equity and can then downsize your home and re-adjust your lifestyle to meet your new financial situation.

Stopping foreclosure due to a lien against your home