How to Avoid Foreclosure, Save Your Home And Keep Your Good Credit Rating!

Are you facing possible foreclosure of your home mortgage? 1.5 million homeowners in the U.S. are currently facing that problem. If you are one of them, don't panic!

You CAN stop this from happening to you! First, you need to quickly learn all you can about how to avoid foreclosure.

Yes, certainly, it can be done. Many thousands, even hundreds of thousands of people have already done so. To get on the right track to avoid foreclosure yourself, read on...

If you have missed a mortgage payment on your home, or think that you might have to face that in the near future, you already know that you are in a bad position.

It happens to people for many different reasons. Maybe you lost your job, had large medical bills, had your interest rate increased, face payments higher than you can make... whatever. These things happen.

If it happens to you, you have two options: 1. you can educate yourself, learn how to avoid foreclosure, to navigate the rough waters that are coming and learn how to stay afloat. Or, 2. You can do nothing and just get washed away by the tide of coming events.

So life has handed you a crisis. And so? That happens to people all the time. Some go under, some survive.

Which do you want to be? You are at a critical time in your life. The choices you make, either by the things you actively choose to do or those that you let happen by not opposing them, will make a tremendous difference to your future. Your problem won't go away. The best course of action is to face it squarely and deal with it effectively.

The good news is that it's now much easier to negotiate solutions. There is a time-honored financial saying that goes, "If you owe the bank $100 and cannot pay, you are in trouble. If you owe the bank $100 million and cannot pay, the BANK is in trouble!"

That is very true today. And this works to help you avoid foreclosure.

What's that you say? You say you only owe the mortgage lender $300,000 so how does that help you?

Well you see, there are some 55 million home mortgages in the U.S.A. 2.8% of them (about 1,540,000) are in default. Now if your mortgage lender has another 350 or so loan clients like you with $300,000 problem loans, (and he probably does!) then in total that lender has a $100 million+ problem!

Your lender is in trouble too. He wants to collect his money, but he certainly doesn't need another empty house to have to try to sell into a soft market! That makes it easier for you to negotiate a workable solution and to avoid foreclosure.

Your key to finding a good solution to your problem will be to get out in front of it. Be PRO-active, take charge. Don't just react to outside events. This is your problem and your home. Take charge and make sure YOUR interests are protected with the best deal possible.

First, you need to do all you can to educate yourself, learn all about the various options you have to avoid foreclosue. You have the most to lose or to gain. It's YOUR home. No one is going to be more concerned about your success, your financial survival, than you will be.

Learn the provisions of the laws in your state regarding foreclosures. How does it work where you are? What legal options do you have? How much time do you probably have? What could slow down the process?

Survey your local home market. How many foreclosed houses are on the market? Are they moving, being sold? How many foreclosed homes are for sale in your neighborhood? Knowing that will be a tremendous help in negotiating a new deal to avoid foreclosure.

Make it your business to become familiar with all of the various options, all the ways to avoid foreclosures.

Second, talk with your lender. In actuality, you are both in this situation together. You may have different goals but you share common interests. Neither of you wants you out of your house and that house up for sale in a weak market. There is a strong mutual-interest basis for re-negotiating, finding some alternative that will work.

Going to the mat and going through a foreclosure is the LAST option you want to permit! If that happens your credit could be ruined for 7-10 years. The times of easy money, that got your lender into their present problems, are not at all likely to be repeated anytime soon.

Much tighter loan requirements are coming. Expect lenders to require loan applicants to have: A. Excellent personal credit, B. 10-20% cash down and C. Secure income with disposable after-tax income of 2.5-3 times annual mortgage payments.

Anyone with a foreclosure on his credit record is not going to be able to meet the requirements. It could well be nearly impossible to get a home mortgage for years into the future. This makes it even more imperative that you take the steps to avoid foreclosure now.

You have many options. There are many alternatives. Get started as soon as possible, educate yourself quickly, find the best option for you, and take it!

Here are some very good places to start:

 For an overview of forclosure and how to avoid it, see Avoid Foreclosure Hell

 For detail plans that work to avoid foreclosure, see Foreclosure Solutions

 If you are already in foreclosure and need to prevent foreclosure now, see Prevent Foreclosure 

Best of luck to you! And remember, many thousands of others have already done it, and... You can avoid foreclosure too!