If you've fallen behind with your mortgage repayments, you need to get home foreclosure help. The sooner you act, the easier it'll be to deal with your mortgage arrears. In an article for RealtyTrac on April 14, 2011 called "Foreclosure Facts" it was revealed that there was a total of 225,101 filings by mortgage and second charge lenders in March 2011.

Foreclosures were down 27% compared to the first quarter of 2010, but this change wasn't attributed to improved market conditions. RealtyTrac believes that the improvement is down to "slower processing rates of foreclosure proceedings." Preventing foreclosure requires an understanding of your options coupled with professional advice.

Home Foreclosure Help from Chapter 13 Bankruptcy

If you serve your bankruptcy petition in good time, there will be an "automatic stay" on the mortgage foreclosure process. This gives you an opportunity to eliminate many of your unsecured debts and reaffirm the mortgage agreement. You'll then make an affordable monthly payment and the lender must abide by its terms. The 2005 code means that not everyone qualifies for bankruptcy, so seek professional advice from an attorney.

Preventing Foreclosure with a Short Sale
With the agreement of the lender, you may be able to sell your property for less than the value of the mortgage and secured loans. For example, you have a $300,000 mortgage and arrange a short sale for $260,000, leaving a $40,000 deficiency. The shortfall is written off.
It isn't an ideal situation, but avoiding foreclosure with a short sale makes the best of a bad situation. The homeowner isn't left with a huge debt, and the lender can achieve a sale at fair market value. The Mortgage Forgiveness Debt Relief Act 2007 provides for the exclusion of cancellation of indebtedness income from a short sale on your principal residence.
In an article for USA Today on the 8 April 2009 called "Home sellers frustrated as short-sale deals collapse", Campbell Communications - who performed a study of 1,300 real estate companies - revealed that: "Just 23% of short-sale offers that homeowners receive from potential buyers actually close." A short sale doesn't always stop home foreclosure due to buyers walking away because of frustrating delays caused by banks and estate agents.

Preventing Foreclosure with a Mortgage Loan Modification

Obama's Making Home Affordable (MHA) plan was introduced on the 4th March 2009 and will remain active until at least January 31, 2012. It involves making an adjustment to the rate of interest, switching to a different loan type or reducing the principal. It could actually involve a combination of all three. Home foreclosure help comes in the form of a more affordable monthly repayment to your creditors.

The U.S. Department of Housing and Urban Development (HUD) provides free or affordable advice about the home foreclosure process. If you need help understanding state law or your legal rights, you should seek professional guidance by calling 800-569-4287.


April 14, 2011. "Foreclosure Facts March 2011" RealtyTrac
8 April 2009. "Home sellers frustrated as short-sale deals collapse" USA Today.