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What to do if faced with foreclosure?

First, and foremost - don't panic, say the experts.

Swallow your pride and your emotions, and respond immediately to any threat of foreclosure from your bank. Also know that, in the U.S., you're not alone as recent headlines show a startling rise in the number of foreclosures nationwide. The difficulty in balancing finances is most to blame in the rise of foreclosures, as it becomes ever more precarious for families to meet the monthly mortgage payment.

Getting in, and out, of foreclosure

After a few months of missed payments, the bank will call in the defaulted loan and begin foreclosure proceedings. If this happens, TALK TO YOUR LENDER and be honest and forthright about your financial situation.

Ask about loan refinancing, or making interest-only payments on the loan. Believe it or not, many reputable lenders would really rather not foreclose on your home. It's usually a money losing proposition for them, so they are happy to work with you on creative ways to get you back on a regular mortgage payment schedule.

Meanwhile, watch out for any sharks that may come circling, calling themselves foreclosure "consultants" and offering services (i.e., like talking to your lender) that you would be better off doing yourself for free. Other such foreclosure scams include equity skimming in which a "buyer" offers to take over the deed, leaving unsuspecting homeowners with the defaulted loan.

More about foreclosure on the Web:

Elsewhere on the Web, take advantage of a wealth of related information & advice, including tips from the experts on how to avoid it, stop it, or otherwise arm you with tools & knowledge you can use in the foreclosure battle ...

Preventing and Stopping Foreclosure - How you can quickly face foreclosure and what to do about it with tips on budgeting and shopping for the best mortgage rates plus additional advice on immediate steps to take to halt foreclosure proceedings and how to spot a foreclosure lending scam.

Avoiding Foreclosure - BankRate guide with expert tips including a table illustrating typical steps in a foreclosure timeline.

How to Avoid Foreclosure - Online brochure from HUD with general information on the topic for homeowners with FHA insured loans, although tips & advice apply to homeowners everywhere within the U.S.

How to Avoid Foreclosure - Step-by-step advice from EHow.com with related tips & warnings, visitor comments.

Foreclosure - Overview of common foreclosure practices in the U.S. with a further explanation of deed in lieu of foreclosure, from Wikipedia.

Bankruptcy Scam Operators Can Lock You Out of Your Home - Typical modus operandi of bogus foreclosure scammers, with links to how you can lodge a complaint.

also see -> Bankruptcy | Eviction Laws

also see in House & Home -> Buying Foreclosures

The information provided on these pages is intended as reference
only and does not constitute professional legal advice.