How to Delay Foreclosure

In today's economy, more people are having trouble making their mortgage payments. If you find yourself in this position, you should know what options are available to you to help you delay foreclosure. Doing so may allow you to keep your home.

Start by contacting the lender who holds your mortgage, whether it's one payment you can't make, or you can't afford your mortgage payment as it currently stands at all. It costs a lender quite a bit of money to foreclose on a home, so if you ask for their help, they're likely to work with you.

Opt for a reinstatement option on your mortgage, in which you promise to bring your mortgage up to date by paying a lump sum by a particular date. This option is best if your financial situation is going to improve quickly, not for those who are going to continue to struggle to make mortgage payments.

Refinance your mortgage, particularly if interest rates are lower than what you are currently paying. You can use the equity in your home to help pay your current late payments, and also to spread out your mortgage over a longer term to lower the payments to a more affordable level for you.

Investigate a deed in lieu of foreclosure with your lender. In this scenario, you sign the house over to the bank, agree to sell it within a certain period of time, and the debt is forgiven. There are many stipulations that vary by state as to who qualifies for this method of delaying foreclosure, so it's best to talk to a real estate attorney.

Sell your home on your own and pay off the mortgage with the proceeds from the sale. This will allow you to start over with a home you can more easily afford.