Facing foreclosure is a difficult process for most homeowners. Foreclosure is stressful and time-consuming for both the lender and homeowners. The economic crisis is continually causing many companies to downsize, leading to many homeowners being jobless. Most people are finding it hard to make ends meet and unable to make payments to their lenders. After about 3 to 6 months of missed payments, your lender will initiate foreclosure and sell your home. However, it does not have to end that way. Even if you don’t have money to pay off your loan, there are other methods you can use to stop foreclosure.

• Mortgage forbearance

Contact your lender to explain your financial difficulties to them and the circumstances that lead to it. Inform them about your plan on how to get back on track with your mortgage payments and request a forbearance agreement for the main time. The forbearance agreement can entail that you don’t make any payment for a set period or that you make a fraction of the original monthly payment until you can make full payment. Forbearance agreement helps you get out of financial difficulties on time and get back with making payment.

• Short sale

A short sale is when you sell your home to an investor for a value lesser than the amount you owe your lender. The disadvantage with this is that many homeowners end up being sued for a deficiency judgment. However, you can prevent this by having your lawyer prepare a document that includes that your lender can’t sue you later for deficiency. Once your lender signs this document, you can proceed with the sale with peace of mind. A short sale will help you keep your credit score intact, and you will pack out at the agreed time without being evicted.

• Government help

The government on all levels has created various programs to help struggling homeowners during these times. Check out the HUD website to determine which of those programs is available in your state and how you can apply for them. Some of those programs give grants to homeowners to help stop foreclosure and save their homes. If you are facing financial difficulties due to job loss, there are programs specifically for unemployed homeowners; apply for them as soon as possible.

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