| If you are having trouble making payments on | | | | lender offers and if you qualify for a forbearance |
| your home these days, you are notalone. A | | | | agreement. This would enable you to temporarily |
| recent report from RealtyTrac, Inc. says | | | | postpone payments for a certain period of time |
| foreclosure filings are up 48% from a year ago. | | | | without your lender filing a notice of default and |
| States which have been hardest hit by | | | | initiating foreclosure proceedings against you. If |
| foreclosures in 2008 include Nevada, California, | | | | your situation is dire and you realize you |
| Arizona, Michigan, Florida, and Colorado. | | | | won�t be able to make payments for an |
| Adding to these concerns, a new study released | | | | extended period of time, see if your lender will |
| by Harvard University says the U.S. housing | | | | accept a deed in lieu of foreclosure. Through this |
| market is the worst in 50 years. The study notes | | | | process, you will basically deed your home over |
| the mortgage market meltdown, steep rise in | | | | to your bank or lien holder and can avoid a |
| foreclosures, the decline of new home | | | | lengthy foreclosure proceeding. |
| construction, falling home prices, and mounting job | | | | 3) Talk with counselors of national programs such |
| losses have all converged to make recovery | | | | as HOPE NOW. It is an alliance between lenders, |
| from the current real estate climate more difficult | | | | credit and mortgage counselors, and investors. |
| in the days ahead. | | | | HOPE NOW can assist distressed homeowners by |
| For homeowners who are on the verge of | | | | providing streamline measures and options to |
| defaulting on a mortgage obligation, the sooner | | | | prevent foreclosure. Visit for more details. |
| action is taken to protect a home the better. The | | | | 4) Proceed to sell your home. You can utilize the |
| following steps could be helpful to avoid a | | | | services of a real estate professional in your local |
| foreclosure: | | | | area or post your property online through any |
| 1) Review the terms of your mortgage or deed | | | | number of for sale by owner websites. Even if |
| of trust. Go over the sections pertaining to | | | | you don�t get your asking price, it is |
| default and seek advice from an attorney. There | | | | possible your lender may agree to a short sale. |
| are a number of attorneys who specialize in real | | | | This means you sell your property for less than |
| estate law who are knowledgeable about the | | | | the outstanding balance owed, but your bank or |
| foreclosure process in each state and they are | | | | lender agrees to accept the proceeds as full |
| best qualified to advise you on your rights. Some | | | | satisfaction for the debt. Not all lenders will accept |
| might offer free initial consultations. Additional | | | | a short sale and most have certain procedures |
| assistance might also be obtained through | | | | that must be complied with. |
| non-profit legal aid organizations and/or low cost | | | | 5) As a last resort � file for bankruptcy. |
| legal services. Check with the bar association in | | | | Once you file a bankruptcy petition, it will |
| your state to see what services are available. | | | | automatically stop the foreclosure process. |
| 2) As soon as you realize you can�t | | | | Depending on the type of bankruptcy you file, |
| make a payment, contact your lender directly and | | | | you may be able to work out a payment plan to |
| discuss and weigh all options with them. It might | | | | keep your home. However, understand that once |
| be possible to refinance or modify the terms of | | | | you file for bankruptcy, it can be reflected on |
| your payment schedule. Check to see if your | | | | your credit report for seven to ten years. |