In May 2008, U.S. foreclosures increased 48% putting many families in the unfortunate position of potential foreclosure. Foreclosure is a trying experience. There is an mighty level of of pressure on families who have limited options and even less time. Read more to learn how to stop a foreclosure sale and keep your property.



It doesn't have to be a hopeless situation. During the foreclosure process you have solutions available to to avoid foreclosure. Being aware of your choices and acting fast are two of the most critical points to keep in mind. If you can reach an agreement with with your lender before they file for a "Notice of Default" then you can avoid the foreclosure process altogether.

If you wish to stop foreclosure after receiving a notice of foreclosure sale, you have't got much time left. There are still a couple solutions that you can consider up to the last minute such as filing for bankruptcy.

Here's some common ways homeowners prevent foreclosure:

Come to a Resolution With Your Bank

There are many agreements that you can agree to with your lender to avoid the foreclosure process. Among the most common are loan modifications, short sales, repayment plans and more. Each of these solutions require you to negotiate with your lender. For some, the services of a foreclosure specialist can be helpful as they will negotiate for you.

Bankruptcy

If you have other debt problems in addition to the foreclosure, you may be considering filing for bankruptcy. Bankruptcy is a last resort and comes with other major consequences that you will want to avoid if you can. If you are in foreclosure and you file for bankruptcy, it will put a temporary hold on the process of foreclosure. The benefit can be short lived because the foreclosure process may resume as soon as the bank is granted permission from the bankruptcy court.

Foreclosure Refinance Loans

Depending on your income, credit, and your positive equity it might be possible to locate a lender who would be willing to refinance your loan in full. If this were the case, you could pay back the foreclosing lender and prevent foreclosure. You will have to pay all associated penalities and fees. Many homeowners opt for the refinance option, but it only works in situations where there is some positive equity in the property.

The Deed in Lieu of Foreclosure Option

For some homeowners, it's not realistic to keep the home for the long term. As time goes on situations change and you may no longer be in a position to afford your home. If this is the case, you may be a candidate for a deed in lieu of foreclosure. A "Deed in Lieu of Foreclosure" is where you turn the property over to to the bank to avoid the foreclosure. Although you don't keep the home you do have an opportunity for a fresh start and can avoid the actual foreclosure process and the stress that comes with it.