Stopping Foreclosure

Added February 6, 2008 by Melanie G. Rogers, ThinkGlink.com staff

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Summary: If you're having trouble making your mortgage payment you probably want to do whatever you can to stop foreclosure. Stopping foreclosure is possible if you take the right steps. The simplest ways to stop foreclosure is to reduce expenses and save money.

When you face losing your home, your top priority may be to stop foreclosure from happening. But how can you do that?

Freddie Mac, one of the two quasi-governmental companies that buys mortgages on the secondary market, has some suggestions on how to stop foreclosure.

The first two ways that Freddie Mac suggests you stop foreclosure are by saving money and reducing expenses. Start an emergency fund to cover unexpected expenses and to help you get by financially if you lose your job. Cut your costs by working out on your own instead of going to a gym or by canceling cable television. Stay in and read or play games rather than go out to the movies. Cook at home and bring your lunch to work. Save every penny you can.

If you've cut your costs and started to save but still can't make your mortgage payment, Freddie Mac offers some next steps to stop foreclosure. They are:

Call your lender -- this simple step can go a long way

Be honest with your lender -- tell the lender your situation, tell the lender you want to keep your home and stop foreclosure

Know what you owe -- pull all of your credit card statements, mortgage documents and other loan paperwork

Talk to a housing counselor -- many non-profit agencies can help you figure out what to do to stop foreclosure

Contact a non-profit housing organization-- a great place to start is the HOPE national hotline -- 888-995-HOPE

Know your options -- forbearance, reinstatements, repayment plans, and loan modifications

It may take some sacrifice to stop foreclosure but if you take steps early, you'll improve your chances.

For more information, check out our other stories on foreclosure at ThinkGlink.com.

February 6, 2008

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