Especially during hard financial times, high monthly payments on a home mortgage may get out of hand. If you cannot meet your payment deadlines or pay the full amount owed each month, your lender may attempt to foreclose on your home and property. In foreclosure, a lending agency may take possession of your home and auction it off in order to reclaim the money you borrowed.
If the threat of foreclosure is looming, it is important to take immediate action to avoid losing your home. You may be able to prevent foreclosure on your home by pursuing one of the following options:
- Make an appointment with a housing counselor. A housing counselor can help further educate you about all of your options and help you make decisions.
- Borrow money from loved ones. Friends and relatives may be willing to lend you money to help you out of your situation. Be honest about the threat of foreclosure and about the time it will take before you are able to pay them back.
- Contact the lender and negotiate. Lenders do not make money through foreclosures, and therefore may be quite willing to explore other options if you present them with a reasonable plan.
- Refinance. You may be able to refinance your current loan at a lower interest rate, making payments more manageable.
- Sell your house and buy something more affordable. This might be your best option if your home simply costs too much for you to afford. Be careful to avoid potential home-buying scams.