How Do I Avoid Losing My Home To Foreclosure?

Some of the important things that you could do to stop foreclosure –
1) Inform your lender if you are going to miss your mortgage payments
If you know that there is going to be a situation where you are going to miss your first mortgage payment, let your lender know about this. It is your responsibility to notify your lender, so that he can explain you the entire process and what to expect. Don’t delay, for the longer you take, there will be other fees and chargers that you have to incur.
Another reason why your lender should know about your situation is because he should get a fair idea as to why you are not being able to make your payments. You could be in this situation for many reasons – losing of job, medical emergency in your family, suffering a financial set back etc; but if you are true to your lender, you can buy some time from him to get your finances right in place.
2) Avail the alternative plans/ programs that the lending company offers to get help from other companies
There is no catch here, so trust your lender and give the offering a serious consideration. There are many companies who are willing to help you and pay for you. Some of these companies are share holder owned companies, who will guarantee that your lender will provide low housing rates for the borrowers.
3) Know about ‘Loss Mitigation Process’
‘Loss mitigation Process’ was initiated by the government of America to help people get out of a Foreclosure situation. This clause has many options, like -
• Loan modification – Under this, the terms of the loan mortgage could be modified for the ease of homeowner and help him get out of foreclosure.
• VA loan modification or refunding – Under this option, homeowner’s loan is bought by the VA (Veterans Affairs).
• Short Payoff – this is another option where the lender may chose to buy the property from the borrower so that the latter is able to get out the foreclosure situation.
• Deed-in-lieu – in this, those homeowners who need to sell their house in a foreclosure situation (and their property has been on the sale for 90 days), get a repayment plan. This is valid for those who are past due for two or more months in their payments.

Renting your house out would be illegal since you signed a note promising to occupy it as your principal residence when you got the mortgage.
Go to one of these “we buy homes for cash” guys. They might buy out you mortgage holder, and rent it to you under a contract that lets you buy it back in a few years when the economy gets straightened out.

If you are behind in payments, contact your lender. See if you can work something out with them.
If you just can’t make the payments, try to sell the house – it’s way better to sell and lose your home, rather than having it go to foreclosure and making your credit worse.