How do I prevent the nightmare of foreclosure and losing my home?

More and more people are experiencing foreclosure due to the inability to keep up with their mortgage payments. To learn about Property Foreclosure Fraud, click here

What if the threat of foreclosure applies to your home as well? Your mind keeps going back to the ominous question of what you can do to prevent foreclosure. How will you keep hold of the house you've loved for so long?

It goes without saying that if you want to keep your home from foreclosure, you must make your monthly payments on time. What if you've been falling behind on your installment payments lately because of things like the recession or other things out of your control?

Sooner or later, foreclosure would occur. What are your options? Is it possible to stop a home from going into foreclosure? It is possible to find answers to problems. Here are some tips for avoiding foreclosure:

Step A: implement the Partial Claim Approach.

This is an easy and effective way to avoid losing your home to foreclosure. Money can be advanced on the bank's behalf to refinance a defaulted loan. No interest is charged on partial claims, and you won't receive payment until the bank is no longer the property owner or you've paid off the initial mortgage.

Step B: Apply for a revised loan

1. A streamlined mortgage modification plan (SMP) allows you to reduce your monthly payment to the bank from as much as forty percent of your gross income. This is one option available to homeowners facing foreclosure. The terms of the agreement state that you must make three consecutive payments in full and on time before they can modify your existing loan to the SMP. This is one helpful strategy for avoiding home repossession.

2. The Fannie Mae and Freddie Mac Program is a fast alternative to the SMP. Reducing interest rates to below three percent and extending the payment term would help homeowners with their mortgage loans. The homeowner's eligibility requirements will determine whether or not this strategy is successful in preventing foreclosure.

3. The IndyMac Plan is another option. The plan assumes a House To Income (HTI) ratio of 38%, which will be decreased to 31%. The interest rate will be reduced to 3%, and the repayment term will be extended to 40 years under this plan. This could make it easier for you to manage your payments and avoid foreclosure. One timely monthly payment is required to begin the program. You must still be a homeowner to qualify for the program's benefits.

Homeowners who are unable to make their mortgage payments due to circumstances beyond their control, such as the loss of a job, a promotion, the death of a family member, or a severe illness, have access to several options for stopping foreclosure; they need to select the one that works best for them carefully.