How to Save Your Home From Foreclosure

how to save home from foreclosureIn today’s economy nothing is perfect and many times people often fall on hardships for many different reasons. If you find yourself in a difficult situation here are some helpful tips on how to save your home from foreclosure. Foreclosure is often viewed worse than bankruptcy in the eyes of lenders so avoiding foreclosure at all costs is imperative. Being pro active and reaching out for financial advice may help you avoid the pitfalls of losing your home to foreclosure.


10 Tips on How to Prevent Foreclosure

Below are some helpful tips on how to save your home from foreclosure.

  1. Seek Financial Advice

Getting help from a knowledgeable family member or a financial professional is a simple step that can make a huge difference. A professional will be able to schedule a financial plan with you that will utilize any wiggle room left in your budget to cover mortgage payments. Asking for advice may allow you to look at your situation in a different light, noticing a solution you hadn’t seen before.

  1. Seek Assistance with Mortgage Payments

This is almost always a very humbling experience, but a friend or family member may be able to temporarily cover the cost of your mortgage until you can get back on your feet.

  1. Adjust Your Personal Costs

In the process of creating a new financial plan to maximize every dollar you have, you may find that it is necessary to significantly reduce or cut entirely a few costs from your daily expenses. Categorize your expenses into wants and wishes first. Try to cut costs from categories like entertainment, cosmetics, and fashion. If you’ve already cut all you can, look further for other places you can reduce spending. You may find that you can reduce gas spending by choosing to walk or ride a bike to reasonable distances rather than drive your car.

  1. Sell Unnecessary Possessions

If you’ve cut where you can and are still in danger of missing more mortgage payments and risking foreclosure, consider the value of your possessions. If there are a few large-ticket items in your house that you aren’t particularly attached to, a simple fix might be to sell those items and put that money towards mortgage payments. If it comes down to it, you might have to decide whether keeping your possessions or keeping your house is more of a priority.

  1. Ask for a Forbearance

Your lender might allow you to do a forbearance if your financial difficulties are temporary. This means that you pay a reduced amount on your mortgage for a period of time, or you are allowed to skip a few payments without penalty. This may give you exactly the amount of time you need to get caught up, and you may avoid taking other, more serious measures by taking this route.

  1. Restructure Your Loan

If your financial difficulties are more permanent than what a forbearance or updated financial plan can fix, consider restructuring your loan. This can come in many forms and requires a meeting with your loan officer. One option available to you through restructuring is extending the loan life, which will reduce monthly payments.

  1. Refinance

Another option that might be even easier than restructuring is refinancing. Talk to your loan officer. You may be able to get a much lower interest rate, which will also reduce payments. If your current lender cannot get you a lower rate or denies you for a refinance due to a poor credit score, come talk to us. We help homeowners in this situation all the time.

  1. Sell Your House

It’s natural for people to get attached to their houses. Oftentimes, your house becomes the image you picture when you think of home. It holds memories and so much more, so getting rid of it in any way might be the last thing you want to do. However, when faced with foreclosure, selling your house may be a much better option. If you have a large buildup of equity, you may actually come out of the sale with a sum of excess money. If you do manage to sell your house before foreclosure, purchase a new home that is at a much lower price that is well within a manageable price range for your situation.

  1. Offer the Lender a Deed in lieu of Foreclosure

Luckily, this isn’t as bad for your credit as a foreclosure, but choosing to take this path means you will still lose your house. In this scenario, you are signing the home over to your lender. Note that this is not always an available option.

  1. File for Bankruptcy

This is certainly a drastic measure. Your credit score can be damaged for up to 10 years by filing for bankruptcy. However, this gives you a small amount of wiggle room since your lender cannot foreclose on a home while bankruptcy is being processed. That small amount of time might be enough for you to make your mortgage payments.


At Low VA Rates, we want to help you succeed and accomplish your future home goals and we firmly believe that no one should be forced out of their homes. If you think you may be in a dire financial situation and are afraid of losing your home, talk to us. We can help! There are many available options that do not include anything drastic. Visit our site to learn more.

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