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The one thing you don’t want to do when you are in foreclosure is to avoid your lender. If you tell them the personal and financial situation that has caused you to be late or miss a few payments and how you plan to eventually pay back what you owe, they may decide to stop the foreclosure.

There a number of ways that your lender can help you avoid foreclosure and prevent ruining your credit rating in the process. We will look at three different options you may have. Either you can get forbearance, a loan modification or a deed in lieu of foreclosure. Each option has different ramifications so it’s important to think each through. Sometimes you just have to accept what the lender offers, but it still helps to know what you are getting into.

Forbearance…

In forbearance, lenders give you the opportunity to pay back what you missed. You are expected to do so within a specified time. If your financial difficult is only temporary, then this is the best option for saving your home and maintaining your credit rating.

Loan modification…

In a loan modification, the lender will agree to change the terms of the loan to make it easier for you to pay off your mortgage. They may lower your rate and then extend the loan so you are making smaller more manageable month payments. Of course, what you missed or owe will be included in the total payment.

Deed in lieu of foreclosure….

In a deed in lieu of foreclosure you deed your home to the lender. You lender becomes the new owner and will end the foreclosure. This is the last friendly resort. Usually, lenders will want for you to try selling your property first before considering this option.

Now that you know you may have a few options other than foreclosure or worst, declaring bankruptcy, you should give your lender a call and tell them your situation while it’s not too late.

Copyright (c) Jackson Chan

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www.60minuteloanmodification.com – FREE Loan Mod Secrets CD shows how I modified loans on all 5 of my homes. LOAN MODIFICATION Empty Houses, Falling Prices & HUGE Opportunity The worst of times ALWAYS opens up huge opportunities for smart people who arent controlled by their emotions. Its your home, so of course it IS emotional, but lets look at the facts 1 Three times as many homes are vacant in the US right now compared with just 2 years ago. 2 Five million homes are facing foreclosure 3 Home values are dropping like flies everywhere At the same time, heres what ELSE is going on: Hundreds of billions (and eventually maybe trillions) of dollars are literally being tossed around to try to fix this mess you and I are both caught up in while sleazy real estate vultures are perched on the hills ready to swoop down on struggling homeowners, taking their deeds and leaving them homeless and broke. This is not melodrama. This is happening in your neighborhood right now. So what do you do? Smart homeowners are making decisions VERY carefullyand theyre taking their time. Theyre not running away, declaring bankruptcy, or giving up their deed to the first fast-talking guy in a tweed coat. Smart homeowners are modifying their home loans before they do ANYTHING. Why? Because its easy, its fast, and itll cost you next to nothing. Best case scenario, you get to keep your home with great terms, and you come out of this downturn on top of your game. Worst case scenario? You buy yourself …

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