How to stop a foreclosure
There are several things that can be done to prevent foreclosure and the loss of your home. Opening a home equity line of credit to help cover your mortgage payments is a great option. If your house is foreclosed on, you lose any equity you had built up in the home, so definitely take advantage of this option first and foremost.
If selling the home is possible, this is a good option not to avoid losing the home, but to avoid damaging your credit. Filing bankruptcy before foreclosure happens is another option, which once activated prevents a foreclosure from being filed. Filing bankruptcy can alleviate a tremendous burden for those who are overwhelmingly in debt.
If possible, don't miss your monthly mortgage payments, but if that is not possible, still pay whatever you can afford as this lets the bank know you still want to pay them and avoid foreclosure. Your mortgage payment is arguably the most important of all your bills, so put any other bills off to allow you to pay your mortgage payment. Never let any bill collector talk you into paying them before you pay your mortgage.
More than 6 out of 10 homeowners who are behind in their payments are not aware of options provided by their lenders to help them, such as reduced rates or alternate payment options. 68% of borrowers who enter a repayment plan end up keeping their home. If you need help, do not be afraid to contact your bank. This is a great way to help yourself out and let them know you still intend to pay them but that you need help.