How Can I Avoid a Foreclosure?

If you are facing a foreclosure on your home, it is important to understand that nobody wins in a foreclosure. You, the borrower, will have a bad credit record and the lender spends a lot of money going through the foreclosure process. Beacause it is a big expense and a waste of money for the lender that may give you a fighting chance of avoiding a foreclosure. Contact your lender as soon as you get a foreclosure notice. Better yet, do it as soon as you are beginning to have difficulties. Explain why you are having difficulty making payments and what you will do to catch up to avoid a foreclosure and to resolve the problem. You will need to provide your financial details of your monthly income and expenses. Here are some options that you can consider:

• See if your lender will let you make partial payments.
• See if you are able to refinance to lower your payment.
• Try to get a loan modification on your existing loan. You may be eligible for a lower payment with a reduced interest and your term extended to up to 40 years. 

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