Few of us are financially immune from the unforeseen catastrophes which life can send our way. A job loss, a sudden illness, or as millions of American homeowners have learned with disastrous consequences, a continuing rise in the prime lending rate, may be all it takes to send someone in a downward financial spiral which leads to the brink of foreclosure.



You and your spouse may even be working two or three jobs trying to stay abreast of your mortgage payments, but are being hit by the rising cost of living. What you desperately need is suggestions on how to stop foreclosure proceedings so that you have the time to turn your finances around. What options are there for helping you avoid foreclosure?

The best time to stop foreclosure is before you have missed your first house payment. As soon as you see financial trouble brewing on the horizon, even if it only means you are starting to dip into you savings to meet your day-to-day expenses, you should get in touch with your mortgage lender. Explain and document the nature of the expenses which may cause you to fall behind on your mortgage payments.

Investigate the possibility of a bridge loan to tide you over so that you can keep current on your house payments until your financial problems have abated, because it's critical that you stop foreclosure from damaging your credit rating if at all possible. A history of foreclosure may prevent you from qualifying for a future mortgage.

By being proactive and trying to avoid foreclosure before you have actually fallen behind on your mortgage you're greatly improving the odds of saving your credit history, and possibly your home.

When you approach your lender regarding your inability to keep up with your house payments, you must be completely aboveboard about the reasons for your financial shortfall. If your lender understands that your situation is only temporary, and that you have always honored your debts in the past, the chances of their working with you to stop foreclosure will improve dramatically. Why?

Because most lenders are almost as reluctant to put homes into foreclosure as homeowners are to be foreclosed on. Lenders do not want to be stuck with empty homes on which they are making no money, but still have to pay insurance and maintenance costs. It's definitely to your lender's advantage to keep you in your home, even if you are paying reduced house payments until your finances have recovered.

Your lender might even be willing to discuss a grace period during which your payments will be suspended entirely, as long as you can give solid evidence of why and when you expect to cover the arrears and resume your normal payment schedule.

The ultimate responsibility for working with your lender to stop foreclosure, however, is yours. You should be capable of presenting a clear and concise picture of your finances, and you should always make a written record of your dealings with your lender. The work will most definitely be worth the effort, however, if it gets you the bridge loan or payment hiatus you need to stop foreclosure, stay in your home, and protect your credit rating!