How to Fight Home Foreclosures

When the reality of losing your home hits, it can be easy to think that there is nothing you can do to fight foreclosure. Depending on how far along in the process it is, there are specific steps you can take to ensure you keep your home.

Instructions

Fighting a Home Foreclosure Early in the Process

1

Renegotiate your loan with the bank. No one wins in a foreclosure situation and your bank may be willing to renegotiate payment terms. Your options include asking for a payment holiday, making partial payments until you get back on your feet, or refinancing the entire loan.

2

Ask your local Housing and Urban Development office for help. There are numerous government programs in place that can help you fight home foreclosures. From homeowner grants to low-interest loans that will take care of the amount that you owe in arrears, HUD can offer several different options for assistance.

3

Ask family or friends for help. If you are only a few months behind, a small loan may be enough to help you fight home foreclosures. If you do get assistance from friends or family, it is vital to set up a repayment plan that you can easily stick to. This will help you avoid straining these relationships. The repayment plan needs to factor in interest for tax purposes.

4

Sell your home. Often called a "short sale," in many cases this process can can help stop a foreclosure. The main problem with this tactic is that it can take months to complete a sale. This method is best if you are just starting foreclosure proceedings.

5

Refinance your home loan with a different bank. If your credit is still in good shape, you may be able to qualify for a loan with another bank. Be advised, however, that this process can take three months or more.

6

Seek assistance from Freddie Mac or Fannie Mae. Congress recently passed the Housing and Economic Recovery Act, which will provide these two lenders with special funding that could assist more than 400,000 homeowners facing foreclosure. Not everyone is eligible for assistance, but this avenue should be explored before foreclosure proceedings begin.