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Stopping a foreclosure is easier than you might think but, lets first get an understanding of why its possible to stop foreclosure.

The biggest factor working on the side of the homeowner is that lenders dont want to foreclose on homes because mortgage companies arent in the business of owning real estate.

Did you know?

With legal fees, taxes and holding cost, it cost the lender $30,000-$40,000 on average just to foreclose on one home?
Chances are, your lender doesnt even own your mortgage anymore
Most mortgage companies sell your mortgage soon after it closes

Thats just a few of reasons why banks are willing to accept a work out arrangement instead of foreclosing on your home.

Lenders are willing to grant one a one-time forbearance (an agreement not to foreclose) or loan reinstatement under certain circumstances. You must have experienced a hardship. Which would include loss of income, job loss etc. (see list of hardships on page 5) they also need to know that the hardship is over and that you can resume making your monthly payments.

So, it is very important that your lender understand that you have a legitimate reason for why you didnt make your monthly payments. Thats why they require w2s and checks stubs to verify that you had a loss in income.

If you predict that you will not be able to afford your mortgage payments in the future, there are other options that your lender may be willing to grant you such as deed in lieu and a short sale. Both of these options will prevent foreclosure, but neither allows you to keep your home.

Having a foreclosure on your credit report subtracts about 150 points from your fico score and you probably wont be able to get another mortgage for at least 2 years. So, if you can avoid foreclosure, then by all means do so.

Lastly, your chances of obtaining a workout plan will be greatly increased if you can come up with about 25-30% of the past due amount to offer the lender. This will help you bring your mortgage current faster, and lenders like that. This will also lower the monthly payment of your repayment plan.

Kevin Harbor, a licensed Realtor specializing in foreclosure prevention. He has been able to successfully negotiate alternative foreclosure workout plans for his clients.

For more foreclosure information visit: http://www.SaveYourHomeYourself.com