 TITLE: How Can I Stop Foreclosure? CONTENT: Ways to Avoid a Foreclosure\n---------------------------\nOnce a homeowner starts missing payments, a notice of default represents the first step in the foreclosure process. Some lenders send this notice to the borrower as a formal warning that the home will be seized if overdue mortgage payments aren't brought up to speed by a certain date. This window of time is known as pre-foreclosure.\nSo, if your home has gone into pre-foreclosure (or you fear it soon will), what are your options for keeping your home? Here are a few of them.\n*   **Reach out to the lender or loan servicer about a remedy as soon as possible.** You may be able to reach an agreement on a payment plan, a temporary forbearance or a modification of the loan terms. With a payment plan, you may be able to work out a way to catch up on past-due payments. A forbearance lets you temporarily make lower mortgage payments or pause mortgage payments. An example of modification is reducing the monthly mortgage payments. If at all possible, reach out to your lender before you start missing payments.\n*   **Sell your home.** Before your home is seized, you may be able to sell it to satisfy the mortgage debt. If the home winds up selling for less than what you owe, this is known as a \"short sale.\"\n*   **File for bankruptcy.** Seeking Chapter 7 bankruptcy merely delays a foreclosure. On the other hand, Chapter 13 bankruptcy may let you catch up on past-due payments and keep your home. Chapter 7 bankruptcy wipes out most or even all of your debts, while Chapter 13 bankruptcy creates a plan for repayment of some or all of your debts. Before you forge ahead with this option, though, consider the severe consequences bankruptcy has on finances and creditworthiness, as it may be hard to recover from.\n*   **Agree to a deed in lieu of foreclosure.** A deed in lieu of foreclosure allows a homeowner to hand over their house to a lender in exchange for avoiding foreclosure.\nGetting and staying current on your mortgage payments is the most obvious way to avoid a foreclosure, but this can be difficult, especially when you're already behind on payments. If you're experiencing financial hardship due to the pandemic or otherwise, you may be able to find financial assistance that helps you take care of bills and other needs so you can more easily afford your mortgage payment (more on that later). Picking up part-time work, cutting expenses and getting a handle on your debt are additional moves you can make to help you keep your head above water and prevent your home from being foreclosed. END