These days, the phrase "home foreclosure" has entered the popular lexicon unlike any time in the past.  With the rates of foreclosure up an astounding 81% in 2008, it's time for people to start thinking about their mortgage.  This doesn't mean there's cause for panic, but the more prudent you can be with your mortgage, the better chance you'll have at avoiding foreclosure. 

That's why we've put together this comprehensive guide to avoiding foreclosure.  If you've been lagging behind on mortgage payments and need to feel empowered as a homeowner, it's time to put the information in your hands and tell you why you should start working with an experienced real estate attorney today. 

Foreclosure Prevention:  Retaining Strong Finances 

As always, the best way to avoid foreclosure is through prevention.  Preventing a foreclosure might be difficult to accomplish, but the concept is simple:  stay up-to-date on all of your mortgage payments, paying in full or beyond full every month.  Of course, this is easier said than done.  If your situation requires a little more effort, keep reading. 

Any homeowner that has looked at their monthly payments and felt boxed-in should start off by writing down their options.  Can you cut anything you don't need in your budget in order to make the right amount of room for your mortgage bills?  If not, it's time to get in touch with a real estate attorney. 

What will a real estate attorney help you with this early in the game?  First, they'll be able to take a look at your situation and evaluate whether or not you might face a foreclosure down the line.  Most importantly, they'll help you understand the laws on the books and how the foreclosure process works, including your rights as a homeowner and the bank's rights as a lender. 

Your Options When Foreclosure Approaches and/or Begins 

If you've waited too long on your mortgage payments to properly avoid a foreclosure, it's time to consider the various legal options on the table.  When you get in touch with your attorney, you'll find that these options include: 

• Loan modification
• Short sale of your home
• Declaring Chapter 13 bankruptcy
• Declaring Chapter 7 bankruptcy

 

You'll likely face one of these choices.  It's impossible to know enough about the processes to make a decision after reading one article, so you'll want to make sure you have a trusted attorney in place who can explain the potential positive and negative consequences of each legal option you have to choose from.  If you act quickly with your attorney, you might be able to lower your payments through a loan modification, or even put your home up for sale to avoid bankruptcy.  If bankruptcy is your last option, your attorney can help you understand which Chapter to file for the best possible protection on your finances. 

Which option is right for you?  It will depend on your situation.  Be sure to get in touch with your real estate attorney to explore more ways to prevent foreclosure - or avoid it altogether.