A foreclosure occurs when a person is not able to pay the rent on time to the lender. Well most of the houses in America are foreclosure due to sudden fall of the market. There were many people who have lost jobs or invested money in the market. Well a foreclosure can be avoided even if you have lost your job or money. A foreclosure of the house is started after ninety days of non payment. Some of the points in stopping foreclosure are:
Pay the rent on time and if you aren't able to then go and speak to your lender. Don't wait till he comes to ask you the rent. Just share your problem with the lender and am sure he will be able to help you by modifying the loan or by adjusting the rate mortgagee. Never hesitate to reply the letter or calls from your lender.
You can also apply for bankruptcy which can be a little dangerous. Once you have applied the foreclosure procedure is stopped immediately and you are allowed to stay at your place. Then the bank will set up certain amount that you need to pay on time or your house will be seized by the bank.
You can also request for forbearance or repayment plan to your loaner. In repayment plan the loaner will allow you pay money in parts if you have undergone major surgery or any financial crises. Most of the loaner doesn't allow you for forbearance. Forbearance means forgiving the debts if you tell your problems to loaner before the due date.
Each state laws are different form other state. Similarly the foreclosure law may also differ from other state. The first thing you should know is whether the state is redemption or non redemption state. What happens if the law says the state is redemption state? If your state has redemption law then you are allowed to pay off the debt within a certain time after the auction. You have every right to stop foreclosure auction if you have paid the debts.
You can know about the market price of your home before trading. Try to find out the original price in the market by asking brokers and then sign the deal with best price. If this doesn't work ask the loaner if he okay with a sale. And the third option is cancellation of debt by handing the property to the lender. Request the lender for extra time, if he says no then contract the higher authorities like senior loan officer. If he is unavailable on the phone then write a letter regarding your problems for not paying the mortgage. They will try to reach to you sooner or later.