1) Before Buying – Do the research before buying a home about the many different types of mortgage loans available to avoid foreclosure. There are many very high interest loans that can help the less than perfect credit get into a home. Sometimes down the road as interest rates adjust and life happens they can no longer make payments and foreclose. Be aware of your income. Know what you will be able to afford down the road.



2) Call Your Lender – The first and most important thing you can do if you are trying to avoid foreclosure is to call your lender. Often times they will have repayment options to help you get your payments back on track without losing your home. If you ignore the lenders calls and letters, they will have choice but to assume you do not intend to pay your mortgage.

3) Short Term Solutions – A repayment plan, forbearance or reinstatement can help you avoid foreclosure.

a) Repayment Plan – This may be an option for you if you are behind only a payment or two. They could give you the option of paying a little extra to catch up missed payments.

b) Forbearance – During forbearance you will cannot make payments. They follow this up with a repayment, reinstatement or other option to catch up for this time.

c) Reinstatement – If you fall behind on mortgage payments you may promise a lump some payment by a specific date. This agreed upon lump sum will get your mortgage caught up to date.

4) Modification - To avoid foreclosure some mortgage companies will allow you to continue your payments and take missed payments and add them to the end of your loan. In short, this will simply lengthen the loan for those months you missed payment.

5) Sell – If the other options just will not work for you, selling your home will help avoid foreclosure. It is a difficult decision to make but a smart one if you are in over your head with no options to rebound. On the upside, if you sell your home with money left over you could use that for a down payment on a more affordable home.

6) Deed in lieu of Foreclosure – This option will help you avoid foreclosure by turning over the deed to the lien holder. They in turn forgive your debt. It will have an impact on your credit, but you avoid foreclosure.