Precisely the answer to this question depends on various factors. First it should be made clear at what stage of the foreclosure process the property is lying presently. Whether at all the foreclosure process has already commenced or not. The thing is it is fairly convenient to stop a foreclosure process before it commences and it will be too late to retrieve your home, once it is listed under foreclosure listings for sale, either by a Judicial Foreclosure Process or a Non-judicial Trustee Sale Foreclosure process.
The foreclosure process is taken up by the mortgage lenders reluctantly, as a last resort to get back the money invested by them as home loan on the property concerned. This has many procedural wrangles and entails delays in converting the said property into hard cash. Therefore it should be understood clearly that the mortgage lenders will be willing to make some arrangements with the borrower first of all, so that a way out is found beneficial for both in avoiding the foreclosure.
Many home owners do not seem to understand the seriousness of their defaulting the repayment installments and tend to ignore the facts before them. They are blissfully ignorant that foreclosure will not happen in their case. When they find difficulty in meeting the commitments of monthly repayment installments, for whatever reason, the very first step they should take is to call the mortgage lender to sort out the issue. This will avoid the issuance of Notice of Default by the lender, which starts the wheel of motion of foreclosure procedures and the attendant unpleasantness.
There are solutions to stop or avoid foreclosures that can be worked out by the lender and the home owner in distress. If need be the assistance of a lawyer well-versed in foreclosure proceedings or HUD-approved Housing Counselors or reliable foreclosure mitigation agencies in your area can be sought, to mediate between you and the mortgage lender. These people are in a better position in handling the issue, without the emotional aspect. The bank or mortgage lenders, if approached properly, will be able to propose some options for striking out a deal.
Forbearance: The lenders legitimately expect their home loan extended to you to be repaid in full. If they are explained of your exact financial problem and what best commitment you can make to repay their loan, the chances are they will allow you to workout a repayment plan affordable for you. The lender expects what adjustment in the repayment schedule already agreed upon by the mortgage deed can be made now. They will be ready to wait and postpone the foreclosure process in such a situation.
Temporary forgiveness of missed payments: If you are caught up in a temporary disablement financially not to pay some installments, the lender can be approached to consider forgiving the lapse on your part for a temporary period. A way can be worked out to spread the lapsed payments over a period of say one year along with regular monthly payments. This arrangement will avoid issuance of Notice of default.
Modifying the mortgage terms: By a mutual agreement both the borrower and lender can modify the terms of the mortgage deed, as a means of avoiding foreclosure. The rate of interest can be frozen from floating every month; or changed suitably to a level manageable by the lender instead of a total default; or the amortization period that is the principal and interest outstanding are paid off in full over a specified period to be worked out afresh; refinancing on the same equity that is increasing the loan principal to accommodate missed payments.
Finally the distressed home owners can resort to the latest welfare scheme of the Government. The HOPE for Homeowners (H4H) scheme has come into effect from 1st October 2008 to benefit nearly 4, 00,000 distressed home owners in the country. Home owners get relief by refinancing their properties for a freshly apprised value and 30 year fixed rate home loan with lower payments. You can contact your lender or a fresh mortgage lender as how you can qualify and get benefited under this new scheme. Thus keep your Home for yourself.
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