How to Stop and Avoid your Home Foreclosure


It is always better to be safe by making your mortgage payments each month on time to avoid Home foreclosure on your home.

Foreclosure is a legal process in which a lender attempts to recover the balance of a loan from a borrower who has stopped making payments to the lender by forcing the sale of the asset used as the collateral for the loan.

Because losing your Home is really scary and painful feeling to imagine because having a home is to have a shelter you in live in. Obviously, no one ever want this to happened with them.

But unfortunately, due to any bad consequences like if you or any family member got sick, you lose your job. Shortage of money because of this you couldn’t make payment of your Home Mortgage.

If you fail to make your mortgage payments because of your financial issues, then you may feel it’s all your fault.

This bunch of feeling guilt and shame will create a layer of stress in your mind which really effects your mental peace. The situation can get even worse because a foreclosure can impact badly on your credit score. Which makes harder to buy a new home in future.

If you are facing this type of situation or you want be safe from this kind of problems in future. Must read what you can do to save your house?

Make some extra cash

There are still many ways available to you if you failed to pay by more than month or two. But you can still have a chance to get your home back and get on track again. If you can raise enough cash with you by some saving by working part time for your home. Then you may save your from home foreclosure.

Here are some tips you can do it yourself to save and earn some extra money

Avoid Extra Expenses

Start cutting your least important expenses if you haven’t started yet start it today. By cutting by drop your Gym membership until you collect some good cash for your foreclosure. Cancel you Cable TV, have cheaper phone plans. Stop drinking water bottle, Going out for lunch or dinner, don’t buy new cloth until it’s really.

If it’s not enough for you to clear due payments then it’s time to go on more extreme level. Slash your grocery bills, prepare you food at home in affordable way. Also if you have a car give up on that too because. It is better to lose your car than your Home.

Work Part-Time

Take a help of Aid solutions if you qualify for any form of government aid such as Medicaid. SNAP (food stamps), or heating assistance these will add up some good money to your budget

The second option can be a part time job which you can find it easily off-course it will be little tough and restless. This can be the better option if you really want to save your home. You can work some extra time at office or you may find an option like an Uber driver, typing work or side gig etc.

Rent your Home

This can be on your luck if you find anyone who is looking a room for rent on right time. Then you can give them on rent and spare your home with needy one by this you will be able to collect some money for your Mortgage payment and avoid home foreclosure.

Sell Stuffs

You can also try out this thing it works well if you have some valuable or costly show pieces in your home. Sell products like value items include jewelry, electronics, collectibles, tools, musical instruments, and even some furniture or a second car. If you can get along without them you may sell this things to ebay or a pawn shops.

There many other ways to which you can try with your bank mortgage provider


A few people end up in a tough situation due to flexible rate contracts that have a low, reasonable instalment. For the initial scarcely any years, at that point out of nowhere bounce up to a level that is far off.

A portion of the most noticeably awful offenders are intrigue possibly advances, which become substantially more costly when you need to begin paying chief just as intrigue.

Others have fixed-rate contracts, yet the loan cost is extremely high – maybe in light of the fact that they had helpless credit, or maybe on the grounds that the rates incidentally turned out to be high at that point.

In case you’re in any of these circumstances, renegotiating your home loan could be sufficient to get your regularly scheduled instalment down to a level you can deal with. This can be a choice regardless of whether you’re topsy turvy on your credit.

Normally, banks would prefer not to re-negotiate a home loan except if you have a decent lot of value, however in the event that the option is leaving the credit, the bank can get more cash-flow by letting you re-negotiate than by experiencing the lack cycle.

Refinancing vs. Foreclosure

Refinancing your home loan, if you can do, is usually the best alternative option to Home foreclosure. It offers plus points:

  • Least effect on Credit. When you apply this offer because obviously if you apply for new loan that will going to affect a bit on your credit score but not more than the other options like other options – such as a short sale, loan modification, or deed in lieu of foreclosure. This will a give least damage your credit rating for long term.
  • An Affordable Loan. Refinancing gives you a choice you have more affordable loan than unaffordable one. You will pay the amount which you can afford every month and you’re comfortable with, rather than beyond your budget.
  • Keep Your Home. The best part is that refinance lets you keep your home with you. You just need to fill some forms and several paper work can be a little messy and hassles but that is good than moving to new house.

Ways to Refinance

If you have built some good equities in your house than it is easier you to get refinance and the banks will be happy to refinance your loan. Even if you can’t get in lower interest, you should be able to lower your monthly payments by extending your loan term.

For example, if you had a $200,000 loan and had already paid off $40,000, you can take out a new 20-year loan for $160,000. It will take you longer to get your house paid off this way, but that’s better than losing your house completely.

If you don’t have much equity, there’s a chance you can still refinance with the help of some special programs. These include:

HARP: Home Affordable Refinance Program 

FHA Programs: Federal Housing Authority

IRRRL: Interest Rate Reduction Refinancing Loan 

forbearance plan

It is an agreement, then loan owner /lender agree to reduce the amount for some set of time. With a repayment plan, the lender temporarily increases your monthly payment by adding part of the overdue amount to your current payments. So, that you can get trapped up on the loan. 

It can affect your credit score, however, the credit of homeowners who required safety because of the pandemic is not affected. This is definitely a better option than simply not paying altogether. It comes down to communication and negotiation.

Deed in lieu of foreclosure

This allows you to sell your home back to your home that financed your mortgage. Its good way to not have an account in Home foreclosure still the big problem will be still there you will loss of your home.

Short Sale

If all of the options don’t work for you then you have one only option to sell your home. I know it’s hard and painful but this can maintain your credit score. That will help you to buy new house without get affected by your credit score.

No matter what will be the present rate of your house selling it will be good to sell. If you want to get rid of bad credit score which can impact you on long term basis. You will not be able to buy new house as well which is worse news so choose wisely.


If nothing works then the best option will be short sell your house as this will protect your credit score. If your credit score hits badly due to Home foreclosure than it might happen that you can’t buy new home in upcoming 2 years. Its always better to keep your credit score secure and good.

After short sell you can buy new house a little cost effective than previous one. But always keep in mind your last mistakes that you have done before. Do your math before buying new home. That will give you a clear idea about the monthly amount you can pay for your home mortgage which you can afford without any hassle.

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