If you where able to stall your foreclosure for an extra six to twelve or even eighteen months would that extra time allow you to get your finances back to a place where you could afford and more importantly qualify for a mortgage loan modification program.

Some families who have through no fault of their own lost their main source of income due to the economic downturn have unfortunately fallen into the foreclosure trap. Their only crime is that their jobs where victims of bad management. Now with no source of income they have fallen behind on their home loan and are facing foreclosure and the loss of the family home.

Some of theses people have top class qualifications and excellent prospects of large incomes when the economy eventually rebounds. So it appears that perhaps all some people need is a strategy that would hold off the foreclosing lender until they find a new good paying job.

There are numerous things that can be done to slow down the foreclosure process from declaring bankruptcy to filing a case at your local courthouse asking the judge for a injunction order against the bank and its attorney thereby stopping the auction.

The only thing that is guaranteed is that if you do nothing your home will be auctioned and you will lose it.

Never ever ignore any correspondence you receive from your lender or their attorney by mail. Never ever ignore any correspondence you receive from any US Court. Remember that without and order from a judge no one can proceed against you. Even is states where the foreclosure system is non judicial the foreclosure must be recorded with the court.

Merely committing to fight the bank and its attorneys will guarantee you at least an extra three months. Perhaps in three months you might have found a great job and will be in a position to easily afford your current payments.

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Millions of consumers are finding it hard to pay their mortgage in these tough economic times. Perhaps you or someone you know is in such a predicament and sliding towards foreclosure. Before the situation becomes even worse, here are some suggestions to attempt to dodge foreclosure:

1. Whether or not you want to keep the home…
A. Learn what the foreclosure laws are in your state. Like the set timer on your stove counting down, your state gives your lender a specific amount of time before your legal right to your property is done. You need to know how long you have to redeem or sell your property so the full foreclosure does not occur. Contact your local Recorder/Register of Deeds or the Sheriff’s Department, who in most states holds the foreclosure auction, and they will be able to give you correct information regarding the time you have left to do something with your property.

B. Thoroughly investigate any person or company who contacts you about “rescuing” you out of foreclosure. Multiple foreclosure “scams” are being reported from coast to coast so contact your state attorney general’s office, the Better Business Bureau, or your lender before giving them any information or signing any documents. The last thing you need is to be swindled when you’re already in a bad situation.

2. If you want to keep your home…
A. Pursue “forbearance” with your lender. Perhaps you are behind on your mortgage due to a temporary reduction in income, and you fully expect to get back on your feet. Your lender can reduce or suspend your mortgage payments for a period of time, and/or they can arrange to take the amount you are behind and put it on the end of your mortgage when you pay off the loan. If and when a “forbearance” is done, make sure your lender puts it in writing, and keep the letter with your other important documents.

B. Attempt a “loan modification” with your mortgage lender. A loan modification is when the lender agrees to temporarily lower your interest rate for a set period of time to ease your financial burden. Recent government action and your lender’s motivation to have one less foreclosure make this a great option. Contact your lender directly to pursue this alternative and make sure they give you the details in writing regarding your “loan modification.” If they become difficult to work with, carefully consider a loan modification company only after investigating their references and fees. Search the internet for blogs and discussions about them. Call your state attorney general’s office to see if any complaints have been filed against them.

C. If your lender refuses to cooperate, file Chapter 13 Bankruptcy to protect your home from being foreclosed. In Chapter 13 Bankruptcy, you will have an opportunity to catch up on your mortgage through your repayment plan to the U.S. Bankruptcy Trustee.

3. If you don’t want to keep the property…
A. Sell the property for at least what you owe. Sorry to be so obvious, but sometimes with a foreclosure crisis it’s easy to forget you typically have 6 months to sell the property on your own. You may have to sell it yourself or go through a discount real estate broker. I realize the present housing market is very difficult, but homes are still selling. A difficult sale is always better than an easy foreclosure!

B. Negotiate a “short sale” with your lender. A “short sale” is when you and your lender agree on a sales price to sell your home for less than what is owed. In most cases in the current market, this is due to falling home values. Be sure to contact your lender about a “short sale” before you put your home up for sale. They may require an appraisal to determine fair market value. If you do sell your home by “short sale”, make sure you contact your tax accountant. The 2007 Mortgage Forgiveness Debt Relief Act changed tax laws so sellers who do short sales on their primary residence do not have to declare the shortage as income as long as it is less than $2 million. To be safe ask your accountant how it applies to your specific situation and short sale.

When it comes to escaping foreclosure, there are no easy solutions. You just have to do everything you possibly can to dodge it.

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One of the difficult parts of navigating a bankruptcy filing is learning all of the various legal and financial terms used by your lawyer and the court. If you end up filing bankruptcy, you’ll experience something known as the 341 meeting.

If you’re wondering where the name comes from, it comes from the section of the bankruptcy code that deals with the subject. (That’s the same reason that the various types of bankruptcies are known as Chapter 7, chapter 13, and so on.)

At this meeting, you and your attorney will discuss your case with the trustee. This person (also known as the case trustee or panel trustee) is responsible for selling any nonexempt assets and distributing the funds to your creditors during a Chapter 7 bankruptcy proceeding.

The good news is that in the vast majority of cases, you will not have to liquidate your assets during Chapter 7. This is either because you don’t have any assets worth mentioning (hooray!) or because your assets are exempt.

You will have to answer some questions, with your lawyer’s assistance, regarding your assets. Again, in a Chapter 7 filing, the trustee is mainly concerned with trying to liquidate any assets that can help pay off your debts. You should be aware that this can include funds that you receive within six months of filing bankruptcy like life insurance, or inheritances. You may also have to give up some tax refunds from the current year or past years, but the creditors can’t take any future tax refunds.

You may be surprised to learn that in most cases your creditors will not show up at the meeting. There are some exceptions, so you may see some of your beloved creditors join in the interrogation process, but chances are they’re too busy harassing other clients.

Okay, the last comment was a bit harsh, I know. In most cases people who end up filing bankruptcy do so as a result of poor financial management (though sometimes there is some poor luck involved such as with unexpected medical emergencies). Nevertheless, the United States federal bankruptcy laws allow you a fresh start in many cases.

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