Millions of homeowners have lost their homes due to foreclosure. However, the good news is there are things you can do to halt a foreclosure. The principal thing you should do if you are having difficulty making your mortgage payments is to contact your lender. Connecting with your lender produces an opportunity for you to create a plan to stop the foreclosure process.

You can apply for a Loan Modification

Both Federal and state laws forbid lenders from continuing the foreclosure process when a loan modification review is underway. With a loan modification the lender agrees to modify the terms of your loan to lower the payment, rate, loan amount, or some combination of these factors to make the loan more reasonable to you.

You can file for Bankruptcy

Filing for bankruptcy is a very serious move, nonetheless it can aid to stop you from going into foreclosure. A bankruptcy impedes a foreclosure as soon as the bankruptcy is filed. A lender can appeal with the bankruptcy court to continue with the foreclosure, but this process can take a couple of months.If you file for Chapter 13 bankruptcy you streamline your debt and get on a payment plan. A Chapter 13 bankruptcy may permit you to keep your home because your mortgage can be included in the payment plan.

You can Short Sale Your Home

If your hardship situation is going to be longer-term and you realize you can't retain your home, you can apply for short sale with your lender instead of just waiting for foreclosure. But this situation is only applicable to homeowners who owe more than their home is worth.Also, your lender must agree to the short sale before you list your home because they have to settle on taking less than the full loan balance when the home sells.

You can ask for a Deed in Lieu of Foreclosure

This is when you voluntarily sign the deed to your home back to the bank. It might appear to be the easiest option to avoid foreclosure; nevertheless it's infrequently granted by lenders because they assume too much legal risk that the borrower can sue them at a later time.

Remember foreclosure is not your only option. Establish a line of communication with your lender when you are going through financial hardship so that they can assist you.