What is the fastest method to stop foreclosure? Ultimately paying off the loan, but if you could do that you wouldn't be in foreclosure in the first place. There is a brighter side to this situation. There are still ways that you can stop foreclosure fast. Read more to learn about popular ways to stop foreclosure quickly.

Refinancing Your Loan

If your adjustable rate loan is rising or if you are dealing with the potential of foreclosure but have equity in your home, you may want to think about a refinance loan. Refinancing is a popular way to stop foreclosure. Refinancing is finding a new lender to lend you the remaining balance so that you can payoff the original mortgage and avoid foreclosure. When you go to look for a lender to refinance you they will be looking at your credit score, income and the amount of equity you have in your home. If you do not have enough equity or a stable income, you may find it difficult to locate a lender to take the risk.

Bankruptcy Filing

Bankruptcy is considered a last resort choice because it comes with quite a few drawbacks. Declaring bankruptcy to stop foreclosure is only effective for a short time. All it accomplishes is to delay it until the bankruptcy court says the bank can go forward. Bankruptcy should not be the answer if the foreclosure is your only major financial problem.

Short Sales

In a short sale, you come to an agreement with your lender for you to sell the home for less than you still owe. Of course, the bank doesn't like short sales because they lose money on the deal. It is still possible to have them granted by negotiating directly with your bank. A caution - short sales may have an effect on your taxes because the IRS considers short sales as income..

The Deed in Lieu of Foreclosure Option

If you are facing the possibility of losing the home, it may be better to avoid the very end of the foreclosure process by offering a "Deed in Lieu of Foreclosure". This is also good if you owe more than the home is worth and your bank will accept it. A Deed in Lieu of Foreclosure is turning the home back over to the bank to stop foreclosure fast. It may be a good option if you are not planning to keep the property.

While these ideas may stop foreclosure, preventing it in the first place is the best outcome. Acting fast at the first signs of trouble, you can stop foreclosure. When you are facing foreclosure, the more time you have, the more choices are possible and the better the outcome.