A forbearance agreement is one way to prevent foreclosure. A forebearance agreement is an arrangement to postpone a borrower’s monthly payment for a limited and specified time period. The loan
continues to accrue interest during a forbearance. A forbearance request must be approved by your lender. Most lenders are willing to enter into such an agreement if the borrower can pay at least 50% of the mortgage arrearage or 1 full months payment and is willing to pay the remainder in 24 months.
Most lenders are open to negotiations if you are in foreclosure. Any kind of preventative measures to save your credit would be a worthwhile endevor.
Preventing a foreclosure is a bit like curing an illness, you have a better chance of beating it if you catch it early
Some lenders will allow you to 'sell' your property to a family member as a way of avoiding foreclosure.
When times get rough and a foreclosure is on the horizon, other drastic measures might have to be taken. If there is plenty of equity within the home, a refinance could be done to pay back the amount due, and in certain circumstances allow you to pay off other debt.
If you refinance your home you will typically be looking at paying a very high interest rate, but in many cases it is worth the sacrifice to save the equity in your home.
Foreclosure prevention can occur if you contact your lender and explain your situation. Often banks are will to work with you because they would rather get paid on the mortgage from you than go through the foreclosure process.
Sometimes, a homeowner is left with no other choice than to sell their home. It's usually a better alternative than letting the house go into foreclosure, because a foreclosure on your credit report is very damaging. If you can find a buyer to "bail you out", it can save your credit rating to some extent.
Lenders are required by law to work with you and try to approve forebearance agreement. Make sure you are talking to the correct person that handles forebearances and communicate everythng in writing. You have more time than you think and even if you get a court sale date on your home, you can get this extended two times before your home is sold at the auction.
If you make all of your payments on time and keep an accurate balance and budget, foreclosure can be prevented
Homeowners have in the past used chapter 13 as a way to prevent forclosure. There are also private investors that will lend the money if needed. The most important thing you need when trying to prevent forclosure is a good mortgage professional.