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How to Stop Foreclosure

Foreclosure is a legal proceeding that a lender can take to make the homeowner pay their missed mortgage payments, or lose their house at a public foreclosure auction. Usually, the bank hires an attorney to oversee the foreclosure process and auction.

Typically, the foreclosure process starts when a homeowner is between three and six months late on their mortgage payments. At that point, the homeowner will likely get a notice of default letting them know they must make all back payments or risk losing their property through foreclosure. The notice of default will have a reinstatement amount that indicates the exact amount that needs to be paid as well as a list of all the missed payments in order to stop the foreclosure and make the loan on the house up to date. If the homeowner cannot come up with the reinstatement amount, the foreclosing attorney is required to advertise the upcoming foreclosure auction in a local newspaper for a minimum of once a week for three weeks in a row.

If you are one of the many homeowners trying to stop a foreclosure there are a number of resources that you can access to help you stop a foreclosure. If you are a distressed homeowner you should contact your lender and loan servicer directly to inquire about foreclosure prevention options that are available. If you are experiencing difficulty communicating with your mortgage lender or servicer about your need for mortgage relief, there are organizations that can help contact lenders and servicers on your behalf.

Making Home Affordable Program

The Making Home Affordable © (MHA) Program is a critical part of the Obama Administration's broad strategy to help homeowners avoid foreclosure, stabilize the country's housing market, and improve the nation's economy.

Homeowners can lower their monthly mortgage payments and get into more stable loans at today's low rates. And for those homeowners for whom homeownership is no longer affordable or desirable, the program can provide a way out which avoids foreclosure.

For more information on The Making Home Affordable Program visit: www.makinghomeaffordable.gov

Homeowner Relief Program

Hundreds of people a day find help at HomeReliefProgram.com. HomeReliefProgram.com will give you the facts about lowering your payment and avoiding
foreclosure. Many programs have been created to help homeowners refinance their mortgage and take advantage of today's historically low rates. Previously, if you were homeowner with negative equity, bad credit or income issues you may not have qualified. Now various programs exist in helping homeowners lower their payment and rate.

Someone homeowners who are behind on their mortgage or experiencing a financial hardship may not qualify for a refinance and therefore may qualify for a Loan
Modification. Loan modifications usually involve an interest rate reduction and an extension on the length of the loan. If the cost of modifying the loan is less than the cost of default then the lender might be open to a loan modification.

If you are behind on your mortgage or facing default due to a hardship you can call HomeReliefProgram.com at 1-888-211-3778

Stop Foreclosure with HOPE NOW

HOPE NOW is a free service dedicated to helping homeowners avoid foreclosure. This program was created by the Department of Housing and Urban Development (HUD) and the Department of Treasury for mortgage companies, investors, counselors and mortgage market participants to help homeowners undergoing financial distress to stay in their homes. You can visit HopeNow.com for more information.

Typically, the foreclosure process starts when a homeowner is between three and six months late on their mortgage payments. At that point, the homeowner will likely get a notice of default letting them know they must make all back payments or risk losing their property through foreclosure. The notice of default will have a reinstatement amount that indicates the exact amount that needs to be paid as well as a list of all the missed payments in order to stop the foreclosure and make the loan on the house up to date. If the homeowner cannot come up with the reinstatement amount, the foreclosing attorney is required to advertise the upcoming foreclosure auction in a local newspaper for a minimum of once a week for three weeks in a row.

It is possible to stop a foreclosure by filing for bankruptcy. The foreclosure process comes to a halt when the homeowner files for bankruptcy. It doesn't matter when the homeowner files for bankruptcy as long as it is before the auction is scheduled. The bankruptcy court will record the exact date and time of the filing. Even if the homeowner files 5 minutes before the auction and the foreclosing attorney is not aware and goes ahead with the auction, the auction will be pronounced null and void.

Another way that the homeowner can stop a foreclosure is to show a sales contract to the foreclosing attorney indicating that the home will be sold. The attorney will want some sort of deposit and a formal written contract that they can take to the bank. The attorney will need to get permission from the lender to halt the foreclosure. More often than not the lender will stop the foreclosure if they feel the sales contract is indeed legitimate.