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What to do if you're 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 bank repossessions and foreclosures nationwide as the economy nosedives in a global credit crunch.

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 repossess or 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.

I'm in foreclosure - now what?

Foreclosure rules vary from state to state, but generally there are two basic procedures - judicial and non-judicial - by which foreclosure proceedings are carried out. A judicial foreclosure sale is one that is filed with the court and subject to court approval. A non-judicial sale is one that is followed according to an already agreed-upon clause in the deed of trust.

Depending on where you live, you may be given a fighting chance to reclaim your house for foreclosure under what is commonly called "right of redemption". Alabama allows up to 12 months to reclaim your property, while Tennessee allows up to two years, while in a number of other states, there is no right of redemption.

More about foreclosure on the Web:

Elsewhere on the Web, take advantage of a wealth of related information & advice on foreclosures including expert tips 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, with more on 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.

State Foreclosure Laws by State - Clickable map to all 50 states with brief summaries, attorney general contact information and related resources.

also see -> Bankruptcy | Eviction Laws | Mortgage Insurance

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.