Are you having trouble paying your mortgage? Perhaps you have missed a few payments in recent months? If so, your bank is probably close to sending you a notice of default. Perhaps you have already received that dreaded letter.

Whatever the case, there is still time to learn how to stop foreclosure. You have to act fast to prevent the bank from taking your home from you. Did you know that banks really don’t want to take your home? It makes more sense financially for them to let you keep your home and have you continue paying them back with interest. But if you can’t make these payments they simply have to repossess the home to recover the money owing.

What you need to do is show the bank that you can make payments and that you have just been going through a difficult patch.

Every bank will be different in regards to how they react to you and how helpful they are in assisting you in working out a way to make payments ad keep your house.

If you have had a long, strong relationship with your bank then they are much more likely to be sympathetic to your situation, particularly if you have always made repayments on time until now.

They may offer you a chance to refinance your mortgage. This will result in a lower monthly payment, but a longer loan term and thus a little bit more interest paid in the long term. But compared to losing your family home, this is usually the more desirable option.
But refinancing is only useful if you can afford the new repayment amount. If you have only been short a couple of hundred dollars per moth this will work for you.  If you think refinancing may be the right course for you, check out The Ultimate Loan Modification Guidebook. This book is one of the best (and most affordable) resources I have seen to help you figure out how to modify your loan. It’s written for the average homeowner, who knows very little about the mortgage industry. It will prepare you to talk to your bank and get your mortgage payment down to a level you can afford.

Some banks will let you forgive a payment. They will then ask you to pay extra each month for several months to make up for the missed payments. This is generally applicable if you have only missed a payment or two, and again, if you can afford that extra money every month.

Speak to your lender or bank about how to stop foreclosure. They will have options that can be tailored to your needs. Instead of sitting there worrying about losing your house, take action and if you play your cards right you will be able to sty in your rightful home.

Foreclosure prevention is something that you must look very closely at if you want to keep your home. Regardless of the reason for your foreclosure or for you being close to getting a notice of default from your lender, there are steps that you can take to halt the downward spiral that so often ends in people losing their home.

So what can you do to prevent foreclosure? It might surprise you that there are quite a few options, but none of them involve sitting down and complaining about what has happened.Many people just don’t know what to do or who to talk to, or they can’t afford a pricey lawyer. If this is the case, don’t worry. There are resources you can use that will show you step by step how to stop foreclosure, no matter what stage you are in.

If you’re simply unable to afford your mortgage each month, but not quite at the foreclosure stage, check out The Ultimate Guide to Loan Modification. It describes exactly how to get the terms of your loan changed so you can afford to make your payments. It provides samples forms and letters that you can send to your bank, and arms you with the information you need to get the best deal.

But what if you’re deep into the foreclosure process and about to lose your home? Most of us can’t afford a lawyer, but Foreclosure Defense Secrets, which was written by a team of lawyers and lenders, can provide you with great legal advice that can help stop foreclosure and save your home.

Remember that it is within your power to take action! You may be surprised by what you can achieve. Now, let’s take a look at the possibilities of foreclosure prevention.

1. Debt forgiveness
Some lenders will waive the obligation of a missed payment. But you have to prove to them that you can make payments regularly again.

2. Refinancing your loan
Negotiating a lower monthly payment amount can relieve you of a heavy financial burden and get you back on track. There is often a fee for refinancing but your lender will be able to reveal your options. You can also include missed payments in the new refinanced loan amount.

3. Forbearance
Some lenders will give you a chance to work out an alternative repayment plan rather than take legal action against you.

5. Note modification
If you are on a variable interest rate plan, the lender may consider freezing (fixing) your interest rate before it rises. In some economic times this works but currently in 2009 interest rates are very low so you are unlikely to be negatively effected by having an adjustable interest loan. However this is an option to keep in mind if interest rates rise again.

Foreclosure prevention does not have to be overwhelming. Although it is a very stressful and uncertain time for you and your family, you must remain focused on the most important thing: keeping your home. To do that, learn all you can about preventing foreclosure and always communicate honestly and openly with your bank.

After all, they benefit as well if you keep your home so work with them to figure out the best possible path that will result in you avoiding foreclosure and remaining in your home, whilst at the same time improving your financial outlook.

Foreclosure statistics may paint a fairly grim view of the housing situation in the US, but there is always hope on the horizon.
The most recent statistics from the FDIC (Federal Deposit Insurance Corporation) are listed below.

1. 60% of homeowners who are near foreclosure are not aware that lenders can offer services to help. (Statistic from a Freddie Mac/Roper poll in 2005).
This disturbing statistic tells us that more people could have been saved from foreclosure if only they had been aware of the services that lenders can offer to them if they are having trouble making repayments. It always pays to speak to your lender at the first sign of difficulty.

2. 1 out of every 200 homes will be foreclosed. In a major cities that can mean around 3000 homes are lose to foreclosure each year (statistic from the Mortgage Bankers Association).
This foreclosure statistic is a wake up call for people who think they are immune to foreclosure due to where they live. In reality, no city, town or state is immune to foreclosure.

3. Out of every classroom in the USA, one child is at risk of losing their home due to their parents being unable to complete mortgage payments. (Statistic from the Mortgage Bankers Association).
This alarming foreclosure statistic brings home the pressure that parents are on to repay their mortgage in difficult times. No child wants to lose his house and no parent wants to put their child in such a situation. Read more »