Foreclosure occurs when you fail to make your payments and the
mortgage company takes legal action to repossess your home or property.
Mortgage foreclosure may take place if a homeowner, who has taken out a
loan, defaults on the mortgage payments. Through the process of mortgage
foreclosure, the lender company can take possession of the defaulted
home. In case the value of the home is less than the mortgaged amount,
the borrower may have to face the ‘deficiency judgment’ to pay the
balance amount. Mortgage foreclosure also has a negative impact on the
homeowner’s credit score.

Even though you may be facing mortgage
foreclosure does not mean you have to lose the house. There are many
ways to stop foreclosure when you are faced with mortgage foreclosure on
your home. Some ways to avoid foreclosures include forbearance, loan
modification, mortgage refinancing, sale of the property, etc.

It
is also important that you save your house from mortgage foreclosure in
order to maintain a good credit rating. If you have trouble making your
mortgage payments, the first thing you need to do is contact your
mortgage company and let them know. Prepare all your financial
information such as tax returns, bank statement, etc. and do not abandon
the property to avoid mortgage foreclosure. You can even have an option
to go for a ‘pre-foreclosure’ sale where you simply sell your home
before the bank completes the mortgage foreclosure.

To stop foreclosures, there are several other things
that a homeowner can do. Homeowners can try and apply for Special
Forbearance to avoid foreclosure. This may lead to a revision of the
repayment schedule and in some cases the payment may either be revised
or suspended. Your lender is not in the business of taking homes through
mortgage foreclosure; they make more money by lending your mortgage
payment to other homeowners.

If you are familiar with the
foreclosure listings in your area, it will make things easier for you
when you discuss with your lenders. Foreclosure listings are the lists
of foreclosure homes, with comprehensive information and details geared
towards potential buyers interested in buying a foreclosure property.
Foreclosure listings provide detailed description on various aspects
such as the property details, foreclosure information, neighborhood
information, sales history, tax information and also the contact
information. To find out more on foreclosure listings, the internet is a
good place to learn more on the subject.