What Can You Do to Stop House Foreclosure?

Foreclosures are now at an all time high in the United States. If you are reading this, chances are you're behind on your mortgage payment or are worried that you'll soon be behind.

Don't panic! You do have options to stop foreclosure on your house. The faster you catch the problem and deal with it, the better your chance of succeeding and saving your home.

Here are a few tips to to help you stop house foreclosure:

Do NOT avoid your lender

If you're behind on your mortgage payments, the last thing you should do is avoid the problem and hope it will go away on its own. The idea that you might lose your home and have to face all the consequences that result from foreclosure is scary and overwhelming, but you must confront the issue head on. Be proactive in finding a solution to make sure you keep your home-- and your good credit.

A foreclosure can so negatively affect your credit that you may not be able to obtain another loan for 7 years or more.

You DO have options. Be sure to explore every possibility, and research all legal rights you have as a homeowner.

Always stay in touch with your lender, and keep them up to date with current and accurate information.

Know your mortgage rights

Find all documentation that was provided by your lender when you first signed your mortgage papers. In this documentation, you'll find information about what your lender can and cannot legally do if you have been delinquent on your mortgage payments. It is very important to understand your rights!

Learn the foreclosure laws in your state. Although the laws of foreclosure are generally the same nationwide, each state does have slightly different laws regarding the foreclosure process.

Research your state's foreclosure laws extensively, so you know what rights you have.

Typically, each state has a different timeline for foreclosure proceedings, and becoming familiar with your state's foreclosure timeline could potentially buy you valuable days or even weeks to find an alternative to losing your home.

For more information about foreclosure laws in your state, click here.

Stay in contact with your lender

Write your lender a Hardship Letter as soon as you have missed or think you are about to miss a payment Keep in mind that mortgage companies are run by people just like you and me, so when you put forth the effort to explain your financial troubles, you may find that your lender is sympathetic to your situation. With a Letter of Hardship, you may be able to delay or avoid foreclosure altogether.

Financial difficulties may be a result of:

* Job loss
* Cutback in working hours or overtime
* Retirement
* Divorce or separation
* Ill health or injury
* Death of a family member

If you are unable to pay your mortgage for reasons beyond your control, write your lender a Hardship Letter explaining your situation.

If your financial situation changes, and you know you will be able to make payments again soon, this is the right time to contact your lender and explain your situation as they may decide to give you some additional time to catch up on your payments.

Write your lender as soon as you miss a payment or think you will not be able to make payments in the near future.

The earlier you write your lender the better. If you've been delinquent for multiple past payments, your lender may wonder why you didn't contact them earlier and try to explain your situation.

Ask your lender for any advice or alternatives

Most lenders have Workout Departments that will give free consultations and foreclosure advice to help you avoid foreclosure proceedings altogether.

Remember, foreclosure on a property is something a lender will want to avoid at all costs, and is usually only their last resort to regain the money they loaned to you.

Foreclosure is a lengthy and expensive process for both parties. Given this, lenders are willing to work with you and come up with viable solutions to avoid home foreclosure.