How to Stop Foreclosure Meetings

Foreclosure is a nightmare many people face daily. When a homeowner gets behind on his mortgage, a natural reaction is to ignore the phone calls and letters and hope the situation will go away. This is a bad approach because it almost always results in the homeowner losing his home. However, being behind on a mortgage does not have to mean the home is lost. There are things a homeowner can do to prevent foreclosure, even after several mortgage payments are missed.

Instructions

1

Do not avoid phone calls from the mortgage company. When homeowners fall behind on payments, the natural inclination is to avoid calls from the mortgage company, often to avoid embarrassment. However, the mortgage company has no idea why the account is past due and unless the homeowner informs them otherwise, will assume the worst--that the homeowner refuses to pay. Talk to the mortgage company and explain the circumstances; there could be programs or a payment arrangement a homeowner can utilize to keep his home out of foreclosure.

2

Contact a consumer housing counselor to advocate on your behalf. These agencies have working relationships with many lenders and can often negotiate an arrangement between the homeowner and the lender. A homeowner should contact a housing counselor as soon as he realizes the mortgage payments are becoming an issue.

3

Sell the house through a short sale. A short sale occurs when a house is sold for less than is owed, but the mortgage holder agrees to accept the lower amount as payment in full. Many real estate investors are interested in buying homes through a short sale because the homes sell for less than their actual value, and can be turned around for a profit quickly. First-time homebuyers are often interested because they can get more house for their dollar. Contact a real estate agent that specializes in short sales for assistance with listing and selling the home. The lender will also have to agree to accept the terms of the sale, but many lenders agree because they will often get more of their investment back through a short sale than if they foreclosed and sold the home at auction.