subject: Know Your Option To Avoid Foreclosure [print this page] The current economy is taking its toll on many people forcing them into situations where they need to find out how to stop foreclosures. The situation is far from pleasant but with the right guidance the majority of people will be able to find a way to avoid losing their beloved homes.
Most Effective Ways to Save Your Home from Foreclosure
While there are different ways a person might think would help save their home homes from foreclosure such as working with a debt relief or debt management counselor, the reality is these methods are not guaranteed nor is the mortgage lender required to work with those agencies. On the other hand, there are some more effective ways to provide solutions to the problem: Can I stop foreclosure? Some of the ways that are much more effective than debt relief include the following:
Forbearance agreement with lender
Refinance
Mortgage loan modification
Chapter 13 bankruptcy (if you want to keep your home)
Short sale
Quit claim deed
When Bankruptcy is the Right Answer
While bankruptcy will stop foreclosureat least for the momentthe real question is whether it offers a long-term solution to the financial issues individual homeowners face. Since homeowners each face a different set of circumstances it is important for each one to have access to those services that will best suit those needs. Even a Chapter 13 Bankruptcy or loan modification program is only helpful if the homeowner is able to make the payments on the mortgage after the elimination of the past due amounts. For instance, if you are laid off and your unemployment will not allow you to make regular monthly payments, you might be better off to consider a quit claim deed or a short sale.
There are several government programs to stop foreclosure, but the most well-known are the mortgage modification programs. While these programs are certainly beneficial for those who just ran across hard times and need some help getting back on track again, unless you have the funds available to make the new mortgage payments, you will end up back in the same place all over againand thats even if you are approved for modification in the first place.
While there are programs that will help a homeowner learn how to stop foreclosures, it is important to know the best solution for you as an individual. The answer to the question, Can I stop foreclosure? is certainly an emphatic Yes, the other question you need to ask yourself is which solution offers you the best and most lasting solution to your long-range financial problems. The availability of government programs to stop foreclosure do not ensure the homeowner is exempt from foreclosure by any means. In fact many people who enter into home loan modification programs still find themselves facing foreclosure within a year. They then look to bankruptcy to stop foreclosure or selling their homes.
