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Foreclosure is a blow to the psyche and a drain to finances for all. It is the official seizure of a property by the lender when missed payments have been accumulated like clockwork. If foreclosure is looming its head your way, there are many things you could do to keep living under that roof. For starters, many lenders are willing to work with mortgage holders. Repayment and forbearance plans are popular amongst banks. Some may even put a hold on payments for a few months. Although a lender is unlikely to be so generous with forbearance, realize banks are not in the business of selling houses and that it's worth a shot.
Other "table deals" homeowners can pursue with lenders are loan modification and short sale processes.
Loan modification means adjusting the terms of your loan (i.e. lower interest rate, longer amortization schedule, etc.) to make the loan current. In addition, a short sale is when a lender allows you to sell the house for amount lower than the loan amount and takes the money as part of a "pardon" on the remaining debt. Although not recommended, it is a way out of foreclosure and a damaged credit rating.One last way of ducking foreclosure is to take out short term or advance payment loans. Before filling out the application, do your research. Many homeowners have been blind sided in the past due to hidden fees and charges. Demand to know where your up front payment is going with any lender, as many have been known to flee. A highly non-recommended (though necessary in critical circumstances) way to receive addition funding for impending foreclosure is through a hard money loan. Although they carry higher interest rates and are never issued by commercial banks, it could pay the mortgage for a few months until a new job arises or the home is sold.