Foreclosure is a legal process. Your home is sold to pay off the mortgage balance owed to the lender. Your property is sold at a public auction. if you can't make payments on your loan, your lender must find someone else to take ownership of the home and assume the responsibility of making mortgage payments. Foreclosure means that you lose your home, and your good credit rating.

Preventing Foreclosure.
How do you prevent foreclosure? Make your mortgage payments on time. It's not always that simple. There are times when borrowers face financial problems beyond their control. Your family may be facing a health emergency, or a divorce may suddenly change the course of your financial future.

Before you get into financial trouble, consider these options early enough to prevent foreclosure:

• List the property for sale. When you list and sell your property, you rid yourself of the biggest debt that is overwhelming you-your mortgage.



• Refinance the loan. Before you begin to default on the loan, try to refinance it. If you already have had some late payments on your mortgage, it is likely that you will not be able to get a competitive interest rate; however, call your lender to see if there are any options.



• Ask about a forbearance agreement. Call your lender to see if they would be willing to engage in a forbearance agreement with you. This agreement would allow for a temporary change in your payments to let you catch up on your bills.



• Consider a deed in lieu of foreclosure. You give the property back to the lender. The debt is forfeited, but the house is also lost.

If you find yourself facing the possibility of foreclosure, contact a housing counseling agency as soon as possible to get help in considering the alternative.