Stop the Foreclosure Process

It is estimated that more than 3 million homes will be foreclosed through 2009.  This is worse than what happened during the Great Depression.  Reasons for this are many, but put simply, homeowners have allowed themselves to get into mortgages they couldn’t really afford.  Predatory loan processes used by lenders have only made what is a tough situation that much worse.  If you find yourself in the situation that you can’t pay your mortgage or are on your way there, then you should waste no time taking steps to remedy the problem.  Here are some ways to stop the process:

Debt Counseling

There are numerous companies who will provide debt-counseling services.  They will work with your lenders to get a modified payment plan and also can advise you on refinancing or selling your home.  Keep in mind the bank that owns the mortgage could be willing to work with you to prevent the foreclosure because the bank is not interested in having to maintain an empty house.

Loan Consolidation

There are a number of foreclosure loan companies that will give you a FREE consultation on your current situation.  You should skip past the companies that ask a fee for this service.  These companies can provide the three possible solutions:

1. Provide private or institutional lenders to assist the homeowner.  In this solution you will get a new loan.  To do this you will need to be able to show you can make the payments.  If your credit is currently bruised this may not be the solution for you.

2. Be released from the responsibility of the property.  This is done by having investors buy out your position in the home.  If you are in the situation of not being able to make the payments then this could be a good option for you.

3. Get a short-term loan so you can reinstate your loan.  This solution will stop the foreclosure process fast and get the creditors to stop calling.  However if you are already in the situation where you can’t make your payments then doing this is probably not the solution for you.

If you are in the stressful situation of foreclosure or pre-foreclosure then you need to take action.  The above methods may give you a good start at stopping the process.  The sooner you take action the better.  The absolute worst thing you can do is just stop making payments on your mortgage and not contacting your lender to try and work out a payment catch-up plan.