10 Alternatives to Foreclosure

1.) Reinstatement: Your lender may reinstate your loan with one lump sum payment.

2.) Forbearance: Your lender may allow you to suspend or reduce loan payments for a short period of time. Most times a forbearance is combined with a reinstatement when you know that you may be receiving money from another source sometime in the future (settlement, tax refund, etc.)

3.) Repayment Payment: Your lender may agree to let you resume making payments by spreading your past due balance over the course of a few months until you are caught up.

4.) Mortgage Modification: Your lender may change the terms of your loan if you can make payments on your loan but cannot pay the past due amount, or if you simply can no longer afford the payments. Modifications include;

* Extending the number of years that you need to repay, making the loan more affordable.

* Adding the missed payments to the existing loan balance,

* Changing the interest rate (this can also include changing from adjustable to fixed).

5.) Partial Claim: You may qualify for a one-time interest loan from your guarantor to bring your loan current and stop foreclosure -- if your mortgage is insured by HUD. You may be eligible to receive several years before you have to pay this loan off. You are eligible for a partial claim if:

* Your loan is between 4 and 12 months delinquent.

* You are able to make full mortgage payments again.

6.) Selling home: Your lender may give you time to sell your home to a purchaser and pay off the total amount owed on your home.

7.) Short sale/Pre-foreclosure Sale: Your lender may allow you sell the property for less than the amount that is owed.

8.) Deed In Lieu of Foreclosure: Your lender may allow you to give the property back and forgive the debt. Each lender may have certain restrictions that apply to this option.

9.) Assumption: Your lender may allow you to find a qualified buyer to take over your mortgage. This option may also be possible even if your loan states that it is not assumable.

10.) Counseling: Contacting a HUD approved housing counselor can be a valuable option in helping you stop foreclosure. The cost is free or there may be a minimal fee. The counselor can assist you with your financial situation, call the lender on your behalf to work out solutions, provide resources to financial programs to assist you, or offer legal and other assistance.