Do you know your options for fighting foreclosure? Knowing these options can make all the difference when making a life changing decision. Whether you want to save your home or feel it would be better to walk away, it will be the toughest choice you will ever have to make. When fighting foreclosure, one option is to seek professional help but when you are unable to make mortgage payments, it is hard to find the money to pay for legal proceedings. You can do it yourself through education and knowing your fighting foreclosure options.

Option 1 - Forbearance

If you are just in the beginning stages of foreclosure or it has proceeded to an intermediate point, Forbearance may be an option for you. This term is used for an agreement that allows you a temporary break from making the mortgage payments. This works well if you are suffering from temporary financial crisis such as a job layoff. This option can give you breathing space in order to get your life back on track.

Option 2 - Loan Modification

A loan modification is an adjustment of an existing mortgage that can include a lower interest rate, longer term or reduction in principle balance. When you are accepted for a loan modification, the new note is considered current at the time it is created which means your foreclosure is stopped immediately.

Option 3 - Pre-Foreclosure Sale/Short Sale/Friendly Foreclosure

This option will allow you to avoid foreclosure by selling your home for less than what is owed on your mortgage. To qualify, your loan must be at least 2 months delinquent, appraisal of your home meets their guidelines and your debts outweigh your assets.

Option 4 - Partial Claim/For FHA Loans Only

You may be able to work out with your lender a one-time payment from the FHA Insurance Fund to bring your mortgage current. To qualify you must be at least 4 months delinquent but no more than 12 months and you are able to start making full mortgage payments. This claim filed by your lender to the U.S. Department of Housing and Urban Development will result in an interest free Promissory Note which will be due when you pay off the first mortgage or when you sell the property.

Option 5 - Deed-In-Lieu of Foreclosure

This involves voluntarily giving your home back to the lender. Although this won’t save your home or forgive the debt, it will not damage your credit as much as a foreclosure will. If you have done all you can in fighting foreclosure and do not qualify for any of the other options, this may be a choice that cannot be ignored.

These are just your options but do you know about the laws that were put in place to protect you? Knowing these laws is an important step in protecting your home. Do not contact your lender until you are fully aware of your rights. Find out what the latest new legislation in Congress is going to do for homeowners facing foreclosure. Did you know there are Foreclosure Assistance Programs? Are they really legitimate or something to avoid? Find out whether selling your home right now is a real option for you. Learn more than just your options to be fully prepared when deciding how to stop foreclosure now Never stop learning about fighting foreclosure as the more information you have, the better your decision will be when trying to save you home.

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