How to Avoid Foreclosure

You've fallen behind in your mortgage payment and are beginning to feel the pressure. Usually after three to four months without a payment mortgage companies are ready to place your home in foreclosure and put you on the street.

The onslaught of foreclosures in the current economy has forced some lenders to take a second look and in many cases work with the mortgage holder to work something out.

If your mortgage has fallen behind don't just give up and lose the home in which you have already invested thousands of dollars. Try some of the following strategies before you get a notice of foreclosure.

Avoid Foreclosure: Talk to your Lender

One thing is for sure, if you don't talk with your lender you will not work anything out. Dodging phone calls and refusing to call your mortgage holder in response to letters doesn't do anyone a bit of good.

Swallow your pride, the mortgage company already knows you are behind, and get on the phone and talk with a loan counselor. You will find that in many cases they are willing to work with you to help get your mortgage back on track.

Avoid Foreclosure: Be flexible when discussing options

You know what you are able to pay. Don't play games with your lender. If you need to try to refinance at a lower interest rate tell them upfront. A mortgage counselor can usually tell you right away whether you qualify for a refinance. If you qualify, that will help bring your mortgage payment down. If you do not qualify be prepared to discuss other options.

Some lenders will offer forbearance and tack the outstanding portion you owe onto the end of the loan. This will bring your loan current and allow you to begin anew making payments.

A third option is for the mortgage lender to allow you to make your regular mortgage payment while paying money toward the amount in arrears.

An honest discussion with your mortgage lender will help you determine which option is right for you. Sometimes the option is chosen by the mortgage company. Be as flexible as your income will allow in order to avoid foreclosure.

Avoid Foreclosure: Be honest about why you got behind