It’s no surprise that millions of Americans are losing their homes to foreclosure.


The news outlets lead with stories every day about the economic downturn, record unemployment rates, and the drop in housing prices as the real estate market bottoms out. Not paying your mortgage – no matter the reason – will red flag your account and can eventually lead to foreclosure proceedings. If you find yourself already in the foreclosure process, don’t despair. Even though homeowners certainly never plan on being delinquent on their mortgage payments or losing their homes, hope is not lost. This idea of losing a home is certainly stressful and scary but there are ways out of foreclosure so you don’t ruin your credit score or have a foreclosure on your record.

Here are some possible resolutions your lender might consider:

1. Forebearance – Lenders might consider giving you extra time before taking legal action to work out a payment plan that you can afford.

2. Repayment Plan – This option adds a small amount to your current monthly payments for a specified period of time until the amount of the missed payment is collected.

3. Note Modification – Your lender might consider making changes to the conditions of the loan, such as freezing the interest rate for an adjustable mortgage or extending the length of the loan.

4. Partial Claim – Some government loans can be used to pay back missed mortgage payments but there are certain lending criteria to meet.

5. Debt Forgiveness – If you can develop a plan to be current with your loan after this missed payment, your lender might forgive or waive this missed payment. Keep in mind, however, that this option rarely happens.

The key to getting great results with your lender is to work with a qualified team with experience in working with the banks to help home owners out of their situation. Our company has helped many home owners in situations just like yours work with the bank to get great results... and the good thing is that it doesn't cost you a thing at all :-)


This guide is for educational purposes only and is not to be seen as legal advice. Consult with a legal expert before you make any decisions with your foreclosure.