Are you a homeowner who has been ignoring the warning letters and telephone calls from your bank?  If you are, you may find yourself in the middle of a foreclosure crisis.  At this point in time, fear may automatically set in.  What will you do?  Where you will live?  Can you afford to move?  Before you let fear take over, it is important to know that foreclosures can be stopped. Although this process is not easy, it can be done.

It is advised that you speak with your financial lender as soon as you find yourself experiencing financial difficulties.  For example, when you get laid off or fired from your job, schedule an appointment to meet with your lender and develop a plan, before any problems arise.  At the very least, communication should be made when you start receive intent to foreclosure notices.  Even if you have a sign on your home stating that the foreclosure process has officially begun, you can still talk to your financial lender.  In this instance, the sooner you do so the better.

As for why you should talk to your financial lender, even at the last minute, they want to avoid foreclosure as much as you do.  Often times, lenders lose a considerable amount of money on the sale of foreclosure homes.  If you can prove that your financial troubles are only temporary, your lender may give you a reprieve.  They may stop the foreclosure proceedings for you.  As for what can lead to this, you or your spouse getting a second job can help.

If you are dealing with a locally owned and operated bank, which you have been a loyal customer of, it is important to outright ask what can be done.  Offer suggestions yourself, if you do not receive them.  Could you continue making all future mortgage payments on time, but develop a payment plan for your past due amount?  Can you only pay interest for the time being?  Can you be given time to sell your home, as opposed to simply just losing it?  These are all important questions that you should ask.

Another way that foreclosures can be stopped, in most states, is with a declaration of bankruptcy.  However, this step is one that should not be made on a whim.  It is first important to meet with an attorney specializing in bankruptcy.  If you file for bankruptcy will the foreclosure proceedings stop?  Can you make it so that your home is not considered an asset in bankruptcy proceedings?  If so, this is the avenue that you may want to take.  However, since bankruptcy can negatively influence your credit, it should only be used as a last resort.

Before you take any action with the hopes of stopping foreclosure, you need to closely examine the situation at hand.  For starters, would you like to get out from under your property?  If it is a money-pit that needs constant repairs, it might just be easier to go the route of foreclosure or even outright allow your bank to sell the property.  If you want to keep your home, make sure that you can honestly do so.  It is recommended that you take forty percent of your income and apply that towards your living expenses, this includes mortgages and taxes.  If this isn’t possible for you to do, the avoidance of foreclosure now may result in the process starting again in a few months.

Your home is the last thing that you want to lose. Unfortunately even though we know this for a fact, we tend to take our mortgage payments for granted and end up losing our homes. In this scenario , a home foreclosure will happen. When a borrower fails to pay his or her mortgage for a number of payments (usually 3 or 4) the lender will issue a foreclosure by selling the house or repossessing it.

More often than not lenders often lead their borrowers to believe that they don't have other options available. There are other alternatives that homeowners can use to keep their house off the auction block.

These are some of the options that homeowners can use:

• Short stop
• Negotiate a payment plan
• Change of plans
• Third party sale
• Friendly third party sale

Short stop

You can get a short refinance for the foreclosure of your property. If you don't want a new loan to cover an existing one, you can ask the help of a friend. A borrower's friend or relative can buy or pay off the mortgage.

Negotiate a payment plan

The homeowner agrees to pay a portion of the amount and agrees to pay the rest in the succeeding months. The homeowner shows proof of their income and pays a down payment. This is a much easier way and most lenders agree to this plan.

Change of plans

A temporary change in the terms of the loan can be given when properly negotiated. These changes include amortization extension and reduction of interest rate. A foreclosure negotiator handles the job of getting these plans approved.

Third party sale

The property on foreclosure is sold to a third party. The proceeds will go to the mortgage lender as a settlement for the debt.

Friendly third party sale

The third party who buys the property sells it on foreclosure to clean the deed of other holders. Then the property is sold back to the borrower.

These are just a few of the options that borrowers can utilize in attempting to retain their properties. Remember these alternatives are outside the original terms of the agreement. Homeowners may have to negotiate their way with lenders and banks. If borrowers don't want to end up doing any of these alternatives it's best to avoid missing your payments. Preventing home foreclosure is still better than looking for a cure.