Although few home owners think about the potential of foreclosure when signing the paperwork for their mortgage, it is a reality that many must face when money becomes tight. In many instances, selling your home to avoid foreclosure can be an excellent strategy, especially since the alternative, which is typically bankruptcy, can leave your credit rating damaged for years.
Consider Alternative Options
In most situations, the only way to generally avoid foreclosure if missing payments has become imminent is a short sale. Short sales often end with you losing a significant portion of the money you have invested into the mortgage, as the only way to attract a buyer in such a short period of time is to list the property well under the current market value for similar homes in the area. Some alternatives to this option include negotiating a lower monthly mortgage payment with your lender or a period where it is acceptable for no payments to be made, as long as the amount owed is added on to future payments. Another option is to find a renter who will either agree to rent the entire home or sublease while you are still living there.
List the Home if its Value is Higher than the Amount you Owe
A short sale is a tactic which is typically utilized if the value of the home is lower than the amount currently owed. However, if the value of the home is higher than the amount you owe, it makes more financial sense to put it on the market for full price and take your chances with finding a buyer. According to SFGate, "List the house on the market immediately if the value of the house is equal to or greater than the balance of your mortgage. If the value of the house is considerably lower than the amount you owe, you should speak to your lender about a short sale."

 Many people will do anything to avoid the foreclosure of a home they have been living in for a large portion of their lifetime. While avoiding foreclosure can be challenging, it is possible if the proper financial options are utilized. By learning how to stop foreclosure, keeping the house of your dreams should be achievable.
Take Advantage of Available Government Loan Support
For those who decided to take out an adjustable rate mortgage on their home, it may be impossible to afford monthly payments when the interest rate goes up due to market forces. Thankfully, government programs exist to help ease the stress that this can cause on the average homeowner. According to Street Directory, "The government provides FHA-insured refinancing loans to qualified homeowners who may be facing foreclosure due to adjustable-rate mortgages or interest-only mortgages that are set to reset. This program is available to anyone who has a non-FHA insured loan, regardless of their payment history. You also have the ability to roll your first and second mortgage into a single FHASecure loan."
Set up An Agreement with the Lender
Most lenders are flexible when it comes to setting up agreements that prevent foreclosure from occurring. Lenders tend to lose a lot of money in the foreclosure process, so they are typically willing to work with a homeowner in order to prevent it from occurring. Options include a forbearance agreement that freezes payments until your finances are back in order, a repayment plan that allows for missed payments to be paid back over time or a partial claim where the lender loans you the necessary money to make payments interest free.

​Unfortunately, each year millions of homeowners lose their homes to foreclosure because they fail to make their mortgage payments. The good news is that this does not have to occur if you take the needed steps entailed in preventing foreclosure. If you’re worried about having to forfeit your home to foreclosure, here are some ways to avoid this problem.
Consult with Your Lender
Don’t ignore the situation. Contact your lender immediately after realizing you’re may be at risk for foreclosure because you’ve missed a payment. Most lenders don’t want to go through the process of foreclosure as it can cost them considerable time and money.
Stress to your lender that the problem is not permanent, but only temporary. For example, maybe you can’t pay your bills because of unforeseen medical expenses or you’ve lost your job. Most likely, your lender will grant you a reprieve until you get back on your feet. Sometimes, lenders ask for a lump sum payment. If you’re really fortunate, your lender may actually freeze monthly payments. 
File for Bankruptcy
After filing for bankruptcy, what’s known as an “automatic stay” goes into effect straight away. This stops a lender from foreclosing on a home or trying to collect debts. In other words, the foreclosure is halted during the bankruptcy process.
Filing for a Chapter 13 bankruptcy can help in keeping your home as it restructures your debts. This type of bankruptcy allows you to make partial or full repayments of your debts. Therefore, foreclosure may be avoided and you get to stay in your home. This is because you can make your delinquent mortgage payments using a Chapter 13 bankruptcy.
Filing for a Chapter 7 bankruptcy isn’t recommended once you’ve already entered the foreclosure process. But it can delay the proceedings, giving you additional time to live in your home without having to make payments.
Hire a Housing Counselor
You may want to hire a housing counselor who can help you straighten out your finances. What’s more, a good housing counselor can help you devise a workable compromise with your lender to prevent foreclosure.
Just be cautious of any counselor promising to either pause or stop the process of foreclosure. On the other hand, consider that some housing counselors can be expensive. To be safe, find your housing counselor from the website of the Department of Housing and Urban Development.
Considerations and Warnings

• Locate your loan documents to know what will occur from failing to make mortgage payments. Be sure to thoroughly read and understand all terms of the document. If you need help, get counsel from a reliable realtor or attorney.
• Be familiar with your state’s foreclosure laws, as well as the time frames involved.
• Don’t be a victim of foreclosure scams. You should never feel forced into signing documents that says a firm will act in your behalf. If you do, you may be signing over your property title. As a result, you could become a renter in your own house.                                                          

You may need to sell your home. That’s when you need to call the professionals at We Buy Your Austin Home. We will buy your home, at cash, regardless of its condition, situation or equity. Please contact us.