Foreclosures are on the rise across the nation, due in large part to the specialty financing offered by sub-prime lenders that began in the housing boom several years ago. When people with damaged or no credit applied for mortgages, they were often steered to risky products that offered insanely low payments for several years before a balloon payment would come due. Too many people did not understand the risks, and are now facing the loss of those homes. The good news is, there are ways to stop foreclosure.

The first step to take when you realize you are falling behind in your payments is to call the lender immediately. Almost every lender has a program or two that are designed to help you get back on track. This can happen in a couple of different ways, but the outcome is always the same-to stop foreclosure.

When you contact the lender directly, you will be advised of the programs for which you qualify, which can range from restructuring of the existing loan, refinancing the loan, or enrolling in a workout type plan. Any of these can be viable options, depending on your situation and how far behind you are. Know that no matter which option you choose, it will likely cause a dip in your credit score, but it is still nowhere near as low of a decline in rating than you would experience if you did not stop foreclosure.

Understand that lenders usually do not recoup all of their money when they take back a house, so it is to their benefit to work with you to stop foreclosure. If for some reason, though, none of the programs your lender offers are suitable, and you know you will not be able to pay back on the new terms either, then it may be time to sell the house to stop foreclosure.

This is obviously not ideal, but to stop foreclosure proceedings from occurring, and assuming you can sell the house quickly and for enough money to pay off the loan, then you may want to look into this. If you are facing foreclosure, then you will probably already be bombarded with mailers from investors who are hoping to make a quick buck at your expense. Unless you need to sell immediately, and cannot wait for a realtor to find a suitable buyer, and you are certain that the investor is going to follow through with the deal, then careful research of the offers can stop foreclosure.

If you choose this option to stop foreclosure, you will have avoided the pitfalls associated with having a foreclosure on your credit history, which will compromise your ability to secure another loan on a new house. In the future, you must be wary of specialty loans from sub-prime lenders, or you will find yourself in the same boat again, trying to stop a foreclosure from happening.

So in the end, it is important that your initial step to stop foreclosure is to contact the lender. If they can offer you a plan that is suitable and mutually agreeable, then you will be back on track in no time at all. If this does not work for you and your needs, then you may need to sell the home and do so as fast as possible. Regardless of the avenue you take, to stop foreclosure, you need to be honest with yourself and with whom you are dealing to make sure you do not get into this situation again.