Avoiding Foreclosure - There are several reasons peoples homes end up in foreclosure every year. There are certain things that you can do before you your home goes into foreclosure.

The main way to avoid foreclosure is to make sure you make your payments. If you are having a hard time making your payments on time, you have several options. Look into refinancing, borrow the money from a friend or family member, or contact your lender and see if they will be willing to work anything out with you, are a few options you have to start with.

Be very careful if you are approached by a foreclosure bailout company. These companies will usually offer to buy the house from you and lease it back with the option to buy it back. In reality they usually will end up taking your home and evicting you in the process.

You should always try work with your current lender to resolve hardships. Many lenders today are quick to pull the trigger on foreclosures. Often times this is due to borrower not trying to work with the lender. You do have rights if you are having problems.

A forced sale of your property can also be pressed by unpaid property taxes or by liens.

DO NOT IGNORE THE LETTERS FROM YOUR MORTGAGE COMPANY. If you are having problems making your payments, contact your mortgage company immediately. Explain your situation. Be prepared to provide them with financial information, such as your monthly income and expenses. Without this information, they may not be able to help. Stay in your home for now. You may not qualify for assistance if you abandon your property.

As a last resort, you may be able to voluntarily "give back" your property to the mortgage company. This won't save your house, but it will help your chances of getting another mortgage loan in the future.

If you are in foreclosure, there are instances when a lender will refinance your loan and payoff the loan that is in default. The best thing to do if you are considering this option is to contact a local mortgage broker. They will be able to speak with you about your particular situation and tell you if there are any lenders who can help you. This won't change the fact that you'll have a mortgage on your credit report that will show as a foreclosure (although it will be paid off by the new loan), but at least you may be able to save your home. Also, expect to pay a much higher interest rate for your loan. Once you have a property go into foreclosure, you are considered a very high risk to a lender, and they will price the loan accordingly.

Usually these foreclosure "bailout" programs have loan amounts available up to 70% of the homes value. There may be a few exceptions.

Foreclosure buyout mortgages are one of the hardest loans to place, but with this loan the foreclosing lender is paid off and a new loan is created.

A Broker Price Opinion, or BPO may be required in addition to an appraisal in order to secure a foreclosure refinance.

When all else fails, selling your home may be a viable option in avoiding foreclosure. This should be your last resort, however.

If you want a foreclosure bailout mortgage, make sure you communicate with your lender. You first must determine who handles "foreclosure" or loan workouts at your current lender. Send all communication certified mail or if sending a ., call to confirm they got your .. Once your lender feels your are trying, and you have documentation, they are required by law to work with you on a refinance. Work with a lender that understands the process since time is not on your side.

Many homeowners have used a BK 13 to save their homes. This move does do serious damage to the credit but in the end the goal is to save the house. Credit can be rebuilt. If considering a BK its important to have a good BK attorney and be working with a mortgage professional who specializes in BK loans.

For those unlucky enough to default on their mortgage repayments, foreclosure can be a drawn out and traumatic affair. Once a loan secured on a property goes into default for more than three months, the lender can start trying to sell the property to recover the outstanding debt. The selling process typically takes 12 to 18 months from the date when the notice of default was filed.