After you have missed three of your mortgage payments, the lender has the option to file a Notice of Default. As the process goes on, it might seem like the prospect of losing your home is inevitable. Luckily, there are a number of strategies that you can use to stop the foreclosure process and save your home. Let’s take a look.

A Foreclosure Workout

Until your home is actually scheduled for auction, your lender will likely want to work out a compromise with you. They know it’s in your best interest, and they also know that they will end up with more money that way as well. A reputable lender doesn’t want to leave you homeless. Set up a meeting to see what can be done.

Short Sale

After a Notice of Default has been scheduled, you may get an offer from a buyer prior to an auction taking place. Your lender is required to consider all offers that are made. If the offer is reasonable, they may take it. You’ll end up in a better financial position this way. If you’re in the beginning stages of foreclosure, see if you can find a buyer.

Bankruptcy

Filing for Chapter 7 or Chapter 13 bankruptcy will stop the foreclosure process in its tracks. When you file for bankruptcy, an automatic stay goes into effect, which will stop the foreclosure process. Once you get to your court appointment, the trustee will play mediator between you and creditors. This will buy you more time, but it isn’t going to get you off the hook. The whole process is completed in good faith between you, lenders, and creditors.

Second Chance Offer

Selling your home or arranging refinancing can help you gain control of your mortgage. When you arrange your home like this, they will usually take over the mortgage. In order to help you avoid foreclosure, they may give you the option to pay them moving forward in order to retain ownership of your home. This is a great option because it keeps you in your home, it won’t affect your credit like a bankruptcy will and you’ll have a new set of terms to adhere to.

If you have fallen into hard times and your home is under foreclosure, don’t feel like there isn’t anything you can do. Make attempts to work things out with your lender, see if you can sell your home and attempt to catch up on payments. With some hard work and negotiation, you may be able to stop the process in its tracks.