When you are facing the foreclosure process, it is important that you understand all of the options to stop foreclosure as a foreclosure can be devastating to both your family as well as your credit. Many people do not even know that they have foreclosure options or that they can seek foreclosure help. Here are the options that you have to stop foreclosure:

Loss mitigation involves ways to stop foreclosure with as little damage to your credit and pocket as possible. They should be the first choice when you are in debt and struggling to pay your mortgage. In order to seek loss mitigation, you are better off working with loss mitigation firms that are experienced at handling foreclosures and can save your home from foreclosure. You can get a free foreclosure evaluation and find out which loss mitigation option is right for you. Loss mitigation options include:

A refinance is when you go to another bank to get a loan to cover your original loan. In most cases, those who are facing a foreclosure will be approached by lenders offering to help them stop foreclosure by a refinance. Often, the rate that is being offered is higher than prime and the lender is really banking on the idea that you will go into foreclosure and they will be able to take the home. This is known as predatory lending and these practices continue today. If you are having trouble paying your mortgage now, chances are this will only stave off foreclosure, not stop foreclosure. Although refinancing can be considered loss mitigation, in most cases it merely just forestalls the inevitable foreclosure.

A loan modification is worked through your existing bank and gives you the option to extend the term of the loan so that you can pay off the amount that you owe over a longer period of time, often saving you money. If you can afford about 50 percent of your current payment, then a loan modification may be the option for you to stop foreclosure. Loss mitigation consultants can work with your lender to get the best deal for you with regards to a loan modification. Loss mitigation firms know how to approach the lender and what items to present so that they can negotiate the best deal for you. Many people take on a loan modification themselves but lack the knowledge and negotiation skills that are needed to successfully modify a loan. This is somewhat like representing yourself in court - you have an emotional stake in the case and should leave the loan modification to loss mitigation specialists who are third parties and can properly represent your interests.

In order to be eligible for a loan modification, you must present a significant hardship to the company. Loss mitigation specialists can help you with documents that you need to have a successful loan modification.

If you are veteran of the service, you may be eligible for a VA refunding of your mortgage. This is where the VA, the Veteran’s Administration, will guarantee your loan. This may give you some time to decide on options that are right for you. The loan is usually re-adjusted and the rate is often lowered when you proceed with VA refunding. However, not everyone is eligible for this program and critics of this type of loss mitigation say that it, like refinancing, merely staves off foreclosure but does not stop foreclosure.

This is an option if you are a couple of months behind on your mortgage but have plans to catch up. This is made for the short term financial hardship. If, for example, you lost your job a few months ago and fell behind on your mortgage but have a new job, then you might consider a repayment plan. Many loss mitigation specialists can work with your lender to get them to stop foreclosure and agree to the repayment plan.

The short sale is when you sell the property prior to foreclosure, usually with the help of loss mitigation experts. The loss mitigation specialists will work with your lender to get them to agree to take less for the purchase of the house, in many cases, much less than what is owed. Again, this takes sharp negotiating skills as well as affiliates that are willing to invest, usually offered by the loss mitigation firms. Many people like this option to stop foreclosure because it enables them to walk away from the mortgage and the house and start again. This can be a loss mitigation option that you may want to explore if you are struggling to pay your mortgage and have experienced significant financial hardship. Each situation is different and a free foreclosure consultation can tell you if you meet the requirements for a short sale, also known as a pre-foreclosure sale.

This is a type of loss mitigation when you basically sign the house over to the lender in exchange for them to not pursue the foreclosure. This is a good option for anyone who wants to walk away from the mortgage, such as is the case with the short sale. Unfortunately, many lenders are not willing to take the Deed-In-Lieu of foreclosure because they have too many foreclosed properties on their books as it is. This is still a loss mitigation option that you might want to discuss with loss mitigation specialists during a free foreclosure consultation.

This is a loss mitigation option that is used to stop foreclosure if you are 90 days or more behind in your mortgage. It basically gives you time to catch up on your mortgage until you can sell your home. Someone who is going through a sale of the property and wants to stop foreclosure sale, for example, may use a forbearance as a tool to stop foreclosure and continue with the sale of their property. This is only a solution that works on the short term and should not be considered a long term solution to your problem as it only provides you with a little relief for your problem.

This is only available if you have an FHA mortgage and if you are more than 120 days behind in your mortgage payments. You can file a partial claim with the Federal Housing Authority to give you what is in reality, a second mortgage on your property. There is no interest on this second mortgage, however, so it can give you time to catch up on your payments. The partial claim cannot be filed if you are more than 12 months behind in your mortgage payments.

This is when you file a forbearance but without the intention of paying off the property. This gives you a chance to sit rent free for a while as you collect money and figure out where you want to go. This will work if you have property that is worth much less than you owe or has environmental problems that will make it difficult for the lender to sell. You are, in agreement with the lender, staying on until they can decide what to do with the property. This can stop foreclosure, but is not a long term solution to the problem as sooner or later, the lender will sell the property.

In addition to loss mitigation options to stop foreclosure, there are other avenues that you can take to stop the foreclosure process. These include the following:

Some states will offer the right of redemption for the buyer. In some cases, the buyer can have up to three years to redeem the property that has been sold in a foreclosure auction. Not all states offer the right of redemption, however. And the terms differ from state to state. In most cases, the time limit on the right of redemption, if available in your state, is 1 year.

There are two types of bankruptcy that you can file on a personal level that can stop foreclosure - Chapter 7 and Chapter 13. If you have more than 20 percent in equity in your home, then you can lose your house if you file Chapter 7. Chapter 7 is basic elimination of all debt that is unsecured, however, a mortgage is secured debt. Filing a Chapter 7 bankruptcy will stop your mortgage payments or even reduce them. The only way that it can stop foreclosure is if you have substantial unsecured debt, such as medical bills, that is stopping you from paying your mortgage. Chapter 7 is not available for everyone. If you are working, you may not be able to file a Chapter 7 bankruptcy.

Chapter 13 bankruptcy can stop foreclosure and will consolidate your debt. However, this is very detrimental on your credit. A bankruptcy is just as bad as having a foreclosure on your record and will destroy your credit. This can affect you in many ways and can even stop you from gaining employment as an increasing number of employers are asking for credit checks from prospective employees. Chapter 13 bankruptcy to stop foreclosure should only be exercised as a very last resort and if you are not eligible for loss mitigation.

The only other foreclosure option is not really an option, but just allowing the house to go into foreclosure. This is often the worst option that anyone can choose, but surprisingly, is what a great many people do. It does not only destroy your credit, but it can also cause a deficiency judgment to be levied against you. A deficiency judgment is when the lender goes to court for a judgment for the money that is still owed from the foreclosure sale. If your home sold at foreclosure for $75,000 and you owed $100,000, some states will allow the lender to pursue a deficiency judgment for the $25,000 deficiency. In some states, they can get legal fees and costs. This may end up sending you to bankruptcy, which even further destroys your credit.

Clearly, you are better off to stop foreclosure than go through bankruptcy or the foreclosure process. You can get foreclosure help by seeking loss mitigation firms that specialize in the stopping the foreclosure process.

Get help now - Call 866-477-7050 or click here for our free foreclosure evaluation and consultation.