If you are receiving delinquent payment notices from your home lender, then it is time to circle the wagons and start taking action. If you want to know how to avoid foreclosure and keep your family domicile intact then read on. You are probably at the point where notices are coming in and you are panicked and do not know what to do about keeping your home. Stop, and take a breath, then realize that your lender does not want your home, but they do want the money you borrowed repaid in full. They will work with you in most cases, if it is not too late already.

Avoid Foreclosure Now

It is better to contact your mortgage company, and be upfront about your situation. Most of the time, they will work with you in this situation, and help get your house note back on track. Lenders know the ins and outs of all government agencies that can help you when trying to avoid foreclosure. There are rules to follow, and you have to qualify for the financial help. Your mortgage representative may be able to offer a repayment plan on the past due amount. This will allow you to pay off the back payments while keeping current mortgage notes up to date.

You may also be eligible for what is called a partial claim. The mortgage company can contact FHA and apply for a one-time payment from the insurance fund. There are a few prerequisites to qualify for this one time loan. Your loan delinquency is more than four months old, but less than one year. The next qualifier is that you can still make monthly mortgage payments in full. When this is filed with the US Department of Housing, they will pay the mortgage company what is necessary to bring you current and prevent foreclosure. A promissory note and lien on your home will be executed, until the amount of the loan is paid full. Note: You must pay this loan in full before being able to sell your home in the future.

When your lender files a Partial Claim, the U.S. Department of Housing and Urban Development will pay your lender the amount necessary to bring your mortgage current. You must execute a Promissory Note, and then a Lien will be attached to your property until the Promissory Note is paid in full. The Promissory Note is interest-free and is due when you pay off the first mortgage or when you sell the property.

So to sum it all up, trust your lender to help you. They can show you how to avoid foreclosure and keep your home. Also consider rethinking the way you are spending, and create a strict budget that you and your whole must adhere to in the future to prevent this financial disaster again.