When the lender reclaims the amount of loan by trading the property from the home owner is known as foreclosure. More than 50 % of people are suffering due to the recession in U S A. A foreclosure occurs when you don't pay the loan on time. The lender waits up to 90 days before fore closuring the property. Now there are many ways for avoiding foreclosure on your property.
The first step is telling the truth to the lender. Before the lender approaches to you for loan, you need to tell about the problem you are facing. When you don't send the payment the lender will send you letter regarding the due of payment. The mistake most of the people do at this time is ignoring. Ignoring won't solve your problem but it surely lead to foreclosure. Many of them think that lenders are the main reason for foreclosure properties. The lender foreclosure only when they don't have any other choice. So if you want to save your property from foreclosure then pay the loan on time and if not then tell the truth before lender stands in front of you.
The next option for stopping foreclosure is the loan modification. This is nothing but a contract which is drawn at the time of lending property. Loan modification means extending the period of loan or changing the terms of the contract. These can be modified if and only the lender agrees to it. If you want your lender to agree then you need to tell about your problems to him / her. The lender will decide according to the payments you made till then. There is a chance for the lender to ask you all the expenses and income statements. Based on these statement the lender will decide whether the loan can be modified or not.
If the first two things don't work out then you can either re - instate the property or show that you are bankrupt. The basic need for a person is the house where the person will try all the methods for saving his property. Re - instate is a process where you borrow money from your friend or family and pay all the debts of your property. This is option can save you from foreclosure. If this is not possible then you can try for bankruptcy. This is used for setting up repayment plan where the home owners can pay back the debts. You can save your house by this method though it's an expensive plan. For example if you are having a debt of three months then you need to pay little amount of debt plus the monthly loan to the lender. Once you finish giving the debts the threat of foreclosure is removed from your property.