A: According to dictionary.com, to foreclose is to deprive (you) the mortgagor of the right to redeem mortgaged property, when payments have not been made. When you have missed two months worth of payments you have defaulted on your loan, but you are not yet in foreclosure. The foreclosure proceedings will not initiate until the mortgage lender or bank submits paper work to a prosecuting attorney.

Q: What are my options?

A: Once the mortgage lender sends letters informing you of the Foreclosure it is important that you keep your head up; find a way to fix things. Immediately start considering your options of another loan, refinancing, etc. On the other hand, if you know you are in over your head then selling is always an option. To keep from falling deep into the foreclosure process it is really important to weigh out your options, looking at your finances and what you can afford in the future.

Q: Who do I turn to?

A: You can talk to your mortgage lender about your options with payments adjustments, another loan, etc. If you decide to sell the house, there are always local investors who can help you get your feet back on the ground. If you decide to sell your home make sure you are getting help from credible sources and of course don’t ever sign anything before reading it.

A: Laws vary from state to state; in states like Georgia a foreclosure house for sale is advertised to the public only seven days after being filed. However in other states, the house is not publicly advertised until the 130th day of the foreclosure process. If you look online or go to the library and look up your state legislature, you will find a slue of detailed statutes. Do some research so you know exactly what timeline you are dealing with, but the bottom line is to act as quickly and wisely as possible.

Q: Does the lender have the right to repossess my house, even though I have been paying for it all this time?

A: Unfortunately, yes. Even though you only missed those few payments and had paid so many others, the mortgage documents or deed of trust (depending if you live in a judicial or non-judicial state) gives the lender the right to foreclose and repossess the property after you have defaulted on payments for a certain length of time.

Q: What is refinancing and how can it help me out of foreclosure?

A: By refinancing you are essentially taking another loan. The new loan is based off a new appraisal of your property. One benefits of refinancing is that you can sometimes get a lower interest rate, in turn, decreasing your monthly mortgage rate. However, refinancing is not for everyone. It can also put you at higher risk for foreclosure depending on a number of factors. Really do some research and talk to someone who can advise you well on this option.

Q: If I lose my house in foreclosure are my chances of buying again lessened?

A: If you apply for a loan on another house your past foreclosure will show in your credit history. This does not mean you will not qualify for a loan; however you are less likely to receive, for instance, a low down payment loan. It is very important to stay informed and knowledgeable in how to stop the Foreclosure before it happens. There are people who are willing to take the time and help.

About the Author

Lucy Landley is a writer for the National Association of Foreclosure Prevention Professionals, and regular contributor of foreclosure related articles. For more information on NAFPP, please visit http://nafpp.org/.

Investigate lenders

Whenever making a big purchase, do research. Different lenders will offer different interest rates. Know what you can afford and especially know everything the loan entails. Always read and reread the fine print. The key point to remember is before you commit to taking a loan and signing the mortgage documents, or deed of trusts know exactly what you are getting into.

Get financial counseling…if you can

If meeting with an accountant is not a fiscally feasible option, search the internet for tools to help keep your finances in good health. There are many resources, like the National Association of Foreclosure Prevention Professionals (NAFPP), agencies who serve to assist and educate you in finances. The goal is to make payments on time and avoid default payments, which can lead to foreclosure on your home.

Of course that is everyone’s intent. Yet, we are all human and late mortgage payments can happen to anyone. Between taking care of the family and working 40+ hours it becomes easy to miss one of the seven monthly dues. The last piece of mail you want to receive is a letter from your lender saying you have defaulted on your home loan. Staying on top of your finances is essential in avoiding foreclosure. Know exactly how much you have in the bank, how much is going out to all bills including credit cards, insurance, etc. Most banks give the option of online banking which can be extremely helpful.

Get out before the storm hits

Many people who lose there home in a foreclosure are completely unaware of their defaulted payments until the foreclosure proceedings are in effect! Again, stay on top of your finances and if you realize that you have gone in over your head then find a way out of the mess. Don’t panic. This does not mean pick up and leave your house. This means talk to your lender, a local investor, or someone you know who can help; whether you decide to sell your house, re-finance, take another loan, etc.

Know your options

When you’re behind on two mortgage payments, it is easy to become overwhelmed and scared. If you foresee financial struggles, know your options. When facing foreclosure selling your home, refinancing, and secondary loans are all just some of your options. There are online resources which can guide you in the right path, as well as local investors who solely dedicate their work to helping people in foreclosure.

In order to maintain financial health and avoid foreclosure, financial counseling, doing research and knowing your options are all key elements. When you are financially struggling, days become restless and it seems like life only gets harder. Know that you are not alone. There are people in your same situation and there are people who can help. Reading this article has already put you 5 steps ahead of the game.

About the Author

Lucy Landley is a writer for the National Association of Foreclosure Prevention Professionals, and regular contributor of foreclosure related articles. For more information on NAFPP, please visit http://nafpp.org/.