Does this scenario ring true for you?

Your mortgage lender is putting on the pressure. It seems like your phone just doesn't stop ringing, and you dread having to answer it. It seems inevitable that you're going to lose your home to foreclosure soon. Well, relax; it is not the end of the world. It IS possible for you to prevent foreclosure, and once again be able to sleep at night. Later, we'll look at a few ways that you can prevent foreclosure before it's too late. We'll even consider the possibility that you might be able to stop foreclosure after the process has begun. But first:

Are you absolutely certain that you want to stay in your home?

In many parts of the country, property values have been cut in half since the peak of the real estate market. If you're one of the many homeowners who are 'upside down' on their mortgage, owing the bank more than your property is worth, you have to ask yourself,

"Do I really want to stay in this property?"

If the answer is "No", you may wish to reflect upon doing either a short sale or a deed in lieu of foreclosure.

On the other hand, if you have even a small equity in the home and you would rather not move your family, it may very well be worth your time to try to prevent foreclosure.

Break down Your Finances

The first task you should do is analyze your overall financial situation. Compile a list of all expenditures. Are there items on this list that you could live without? Less dining out at restaurants, watching a rented movie at home versus going to the theater, or maybe brew your own morning cup of java instead of stopping at Starbuck's? If you can show your lender that you are handling your money responsibly, it is more likely they will cooperate with you.

Next, jot down every source of income for your household. Now make note of any assets that you might quickly liquidate. If you are only falling a few hundred dollars short on your bills each month then it is quite probable you can prevent foreclosure on your home. If, however, you find that you're drowning in debt then trying to stop foreclosure may not be feasible.

Perhaps you could earn a few extra dollars each month. It might be enough to help stop foreclosure. There are many good work from home programs that could enable you to make a few hundred dollars each month. You need to exercise caution, though, and don't get hooked by one of the "get-rich-quick" scams. Look for part-time job opportunities near your home. This can save you massive time and commuting expense. If you really want to keep your home, you'll not mind the extra effort it takes to bring in that additional income .

Dealing With Bankers

If your financial crisis is due to a set of temporary circumstances, you might be able to negotiate directly with your mortgage lender to get a short-term repayment plan to bring your payments current. This involves making an additional catch-up payment each month for several months. While expensive in the short term, it is probably the fastest way to resolve the problem.

If your payments have gone up and placed you in the position that you cannot afford the home in the long term, you will need to bring the mortgage payments back to an affordable level by seeking a loan modification to resolve the problem, or qualify for a refinance loan with lower monthly payments. The alternative is to move on to more affordable housing.

If you could use some help figuring out the best course of action for your individual situation, you can speak with a foreclosure specialist. They typically offer a free consultation and they often come up with options you had not considered.

There are also good resources available on our website, including "do it yourself" stop foreclosure handbooks that will provide you with the information you need to make these decisions.

Remember, the first step to prevent foreclosure is to let your mortgage lender know that you want to work with them to solve the problem. They usually only have a limited amount of time in which they will negotiate before they proceed with the foreclosure process. You must act quickly in order to prevent foreclosure.