How can you avoid foreclosure?

Foreclosure has become a daily phenomenon in our life. Actually foreclosure is considered even worst then Bankruptcy. The lender can sell your house to get his money back. It will also affect your credit report and cause to drop your credit score by 250 to 300 points. So we should have a clear idea about how can you avoid foreclosure if the worst happens. So I have tried to point out some useful ways through which you can avoid foreclosure.

1. Whenever it seems that you can’t afford the mortgage, first of all contact the lender and check out what are the options that are available for you.

2. You can also request the lender for forbearance that is a formal agreement between the lender and the borrower for delaying the payment.

3. You can even request for a repayment plan and to change the terms and condition so that you can catch up the missed payments.

4. If you want, you can sell the property and pay off the lender to avoid foreclosure.

5. Now if the property value is lower than what you owe to the lender, then you will have to take permission before selling the property. This is called short sale. This is another way to avoid foreclosure. But here the lender can ask you for the deficiency judgment.

6. If you cannot even sell the property then you can request the lender for Deed in lieu of foreclosure. But in this case the lender cannot come after you for the deficiency judgment.