Avoiding a home foreclosure is possible if you take the proper steps and are willing to endure some embarrassing and uncomfortable moments. A foreclosure’s impact last much longer than the actual process itself which is why you should do everything you can to prevent the bank from taking this drastic step against you and your family.

To prevent a foreclosure keep in mind that the banker is making the decision on whether to proceed with the proceedings or give you another chance to make good on the note. That is why you will get better results by being upfront with your lender. Loan modification is the best remedy. You can adjust your interest rates and/or lower your monthly payment making your mortgage affordable.

If loan modification doesn’t work, you may consider a short sale. This is when a bank agrees to sell a house quickly for less than its market value. It can prevent foreclosure, but its probably better for the bank than it is to you because the short sale mitigates the bank’s loss, but wreaks havoc on your credit reports. It acts very similarly to a foreclosure in terms of reducing your FICO score, though a short sale will mean that you could be able to buy a home again much sooner.

If you do nothing and take no effort to work with your bank, then don’t be surprised when they begin foreclosure proceedings. Here is what will happen:

The bank will send you a Notice of Default shortly after you miss your first payment ” usually after 30 days.

Then, the lender will begin contacting you and will accept even small payments to try and keep you current.

After 90 days of missed payments the lawyers typically get involved.

The property is then sold at a foreclosure auction. After the sale you have two options: Either leave at your own free will or wait for the Sheriff to come and evict you.

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