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You have many options when fighting foreclosure, but which one will work best for you? The best defense you have in saving your home is educating yourself in order to make the right choice when making that life changing decision. Whether you want to save your home or feel it would be best to walk away, it will be the hardest choice you will ever have to make. There is an option for those fighting foreclosure which is to seek professional help but when you are unable to make mortgage payments, it may be difficult to find the money to pay for legal proceedings. You can do it yourself through education and knowing your fighting foreclosure options.

Option 1: Forbearance – If you are just in the beginning stages of fighting foreclosure or it has proceeded to an intermediate point, Forbearance may be an option for you. This term is used for an agreement that gives you a temporary break from making the mortgage payments. This works well if you are suffering from temporary financial crisis such as a job layoff. This option can give you the time you need in order to get your life back on track.

Option 2: Loan Modification - A loan modification is an adjustment of an existing mortgage that can include a lower interest rate, longer term or reduction in principle balance. When you are accepted for a loan modification, the new note is considered current at the time it is created which means your efforts of fighting foreclosure is stopped immediately.

Option 3: Pre-Foreclosure Sale/Short Sale/Friendly Foreclosure – This option will allow you to avoid foreclosure by selling your home for less than what is owed on your mortgage. To qualify, your loan must be at least 2 months delinquent, appraisal of your home meets their criteria and your debts outweigh your assets.

Option 4: Partial Claim/For FHA Loans Only – You may be able to work out with your lender a one-time payment from the FHA Insurance Fund to bring your mortgage current. To qualify you must be at least 4 months behind on your mortgage but no more than 12 months and you are able to start making full mortgage payments. This claim filed by your lender to the U.S. Department of Housing and Urban Development will result in an interest free Promissory Note which will be due when you pay off the first mortgage or when you sell the property.

Option 5: Deed-In-Lieu of Foreclosure – This involves voluntarily giving your home back to the lender. Although this won’t save your home or forgive the debt, it will not damage your credit as much as a foreclosure will. If you have done all you can in fighting foreclosure and do not qualify for any of the other options, this may be a choice that cannot be ignored.

These are just your options but do you know about the laws that are out there to protect you as your fighting foreclosure? Knowing these laws is a vital step in protecting your home. Do not contact your lender until you are fully aware of your rights. Find out what the latest new legislation in Congress is going to do for homeowners fighting foreclosure. Did you know there are Foreclosure Assistance Programs? Are they really legitimate or something to avoid? Find out whether selling your home right now is a real option for you. Fighting foreclosure may be one of the most intimidating experiences you will go through. Don’t do it alone. Learn what you can do to stop foreclosure now.

There are more reasons to understand the foreclosure process in the US than ever before. In September, 2008 alone there were 81,312 homes that were lost to foreclosure. The 3rd quarter of 2008 showed a 71% spike in foreclosure rates as compared to last year at this time. These are record-high numbers and it should be obvious that lenders do not want this trend to continue. Still, the fact remains that over 851,000 homes have been repossessed since August of 2007. The housing crisis in America is smothering homeowners – along with the rising costs associated with fuel. People are being financially crippled and hundreds of thousands are falling under every day.

In September, 2008 there were over 265 thousand borrowers that received notifications of foreclosures. Although that number is down 12 percent from August, it is still a 21 percent increase from one year ago. Many times in the past have shown foreclosures to be a result of a weakened economy. This current cycle of foreclosures has in fact caused an economic downturn.

As a result, many states have relaxed their housing laws to slow the rate of new foreclosure filings. This accounts largely for the 12% decrease from August to September. Lenders are now being required to give significantly more lenient notices before initiating the foreclosure process against borrowers. Other law changes are being made as well in favor of the borrowers, but financial analysts fear that even these new relaxed laws are simply putting off what will soon happen anyway.

The effect seems to be that when borrowers receive a longer-term notice before the foreclosure process is initiated, they simply seem to get further buried in their debt. With each passing month, mortgage payments, late fees and costs associated with the foreclosure process continue to mount, and the borrowers are simply overwhelmed. They cannot catch up and so after the notification period extinguishes, foreclosure rates spike again.

The Federal Housing Authority initiated the “Hope for Homeowners” rescue bill on October 1, 2008. It was designed to re-instill investor confidence and absorb some of the poisonous debt that has accumulated. The US Treasury is also buying up troubled loans in an attempt to re-stabilize the various lending entities. As a result, it is projected that by the end of 2008, between 25% and 33% of all homes will be owned by banks and backed by the Federal Housing Authority.

The new laws in many states concerning the foreclosure process give temporary reprieve to tens of thousands of borrowers. It is highly advisable to take advantage of this leniency if you are one of those who are threatened with foreclosure. Consult with a qualified foreclosure consultant and explore the options that exist for saving your home. Many times, a professional foreclosure consultant can show you ways to have the foreclosure process negated and allow you and your family to stay in your home. To learn more about the foreclosure process and your rights regarding it, please visit Stop Foreclosure Help Today. We can help you to keep the home that you have worked so hard for.

Defining the loss mitigation process:

For all practical purposes, loss mitigation can best be viewed as a powerful weapon that can stop your pending home foreclosure dead in its tracks. The loss mitigation process itself is without bounds, but always involves effective communication to be successful. If you are too stressed out about the possibility of foreclosure to represent yourself effectively throughout the loss mitigation process, then you need to employ a professional foreclosure consultant. They, like the loss mitigation teams employed by your mortgage lender, are experts that deal with these issues on a daily basis.

The loss mitigation process involves a set of tools that you as the homeowner are privy to. You can utilize these tools to achieve victory from a seemingly bleak situation. Negotiating with your lender, or having a professional foreclosure consultant to do it for you, is your ticket to retaining ownership of your home. Before we go further, please realize that millions of Americans are at risk of foreclosure even as you read this. Lenders appreciate a motivated homeowner who cares enough to communicate regularly with them and that tries to initiate positive plans of action to bring their loan current. Nobody wants you to lose your home to foreclosure.

The loss mitigation process can do more than just stop the foreclosure process; it can protect the equity that you have built up over the years in your home. With proper loss mitigation techniques employed, your lender will be more than happy to work with you and develop a plan for mutual satisfaction and appeasement. Loss mitigation involves a set of utilities that can stop a foreclosure. They include:

-Partial claims;

-An “In-Lieu” Deed of foreclosure;

-Forbearance agreements;

-Mortgage refinancing;

-Modification of your loan;

- And more…

The ultimate goal for all loss mitigation is to stop the foreclosure process and to establish a mutually beneficial plan for repayment of the mortgage loan including payment amounts and dates. However, nothing is set in stone and unless you are able to convince your lender’s loss mitigation specialists that you are a worthy gamble, they will still elect to go ahead with the foreclosure. Remember: their job is to minimize the losses that will be incurred by the lending institution – not to keep you in your home. If you are unable to thoroughly convince them that your plan is better for them than a foreclosure will be, then they will certainly foreclose. It’s just business in its raw form.

Stopping foreclosure is all about two things: loss mitigation and time. Once the foreclosure process begins, it seems that time cannot be slowed even for a second. The pressures continue to build and it can make you feel helpless – like there’s just no hope. But, there is! Consider having a professional foreclosure consultant assist you with your loss mitigation process every step of the way. It will save you time, money, frustration, worry, embarrassment and mistakes. It will also very likely keep you and your family in your home where you should be. Contact us at Stop Foreclosure Help Today and let’s discuss your possibilities.