If you are going through the foreclosure process you are definitely not alone. These days are hard for many homeowners to pay their mortgage due to the economic crisis we are currently facing in the United States. It is important to remember that a foreclosure must go through a legal process and your mortgage lender must meet many requirements before proceeding.

So because of this you may still have time before you will have to back your belongings and leave your home. To proceed with foreclosure your lender must complete the process which may take some time, I have actually seen it take a year or so on more than one occasion.

You may think that your mortgage lender just wants to get their property back as soon as possible after you begin to default, but you are wrong. The lender usually seems to hesitate on the actual foreclosure because it would cost them a significant amount to do so. During the process the lender will be required to pay certain expenses that obtain to foreclosing on the property. This can easily cost the mortgage lender about ten thousand per month to do so. If the lender does choose to go forth with the foreclosure the chances are the home will lose a good amount of its current value.

If you are currently undergoing the foreclosure process be aware that there still may be a way to fix your situation and bring your loan back to current. Most lenders will work with you and/or lawyer on a possible workout solution such as a loan modification, short sale, or possible even a deed in lieu. They are also well aware of the housing crisis and know they will not be able to sell the property at a decent price. This is one major reason why so many lenders are willing to work with their borrowers on some sort of agreement.

You must be prepared when first approaching your lender for a possible workout solution. Calculate all of your current monthly expenses and decide if there are some expenses listed you can live without. Including luxury expenses such as satellite TV, magazine subscriptions, etc. This will all affect you chances of receiving a loan modification.

But what if you are denied for the loan modification and the foreclosure takes its course?

1. Some homeowners may get lucky enough to find someone who is willing to buy their property at a decent price. However, try to make sure that you are able to sell the property for at least the remaining balance on the properties mortgage. If this happens the foreclosure will become void and you will have the mortgage paid off in full.

2. Try to negotiate with your lender for a possible refinance. This may be very difficult especially in today’s economy, but if accomplished you will be able to avoid foreclosure completely.

3. Your home will be sold at a public auction to the highest bidder. If this event takes place you will lose your home right then, if there is no right of redemption in your state. This will usually vary state to state.

4. If no one happens to bid at the time of sale the lender will then own the property once again. A deed in lieu may help you lessen the damage on your credit score before the foreclosure hits it.

However, you may still get you home back after the foreclosure has taken place! You may want to check with a reputable lawyer because this law will vary state to state. Anyway, the redemption period is available in some states and is a certain amount of time for you to regain your home. This means that even after the auction has taken place you will not be immediately kicked out of the home. You may still have anywhere from a few days to a few months.

So remember that even if you are in the foreclosure process or maybe right around the corner from the sale date, there may still be a chance for you to remain in your property.

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Moe Bedard
Moe Bedard
Founder at LoanSafe.org
My name is Maurice "Moe" Bedard. I am the founder of America's #1 Mortgage Forum, LoanSafe.org. My online work has been featured in the New York Times, LA Times, Fox Business, and many other media publications. I currently live in Carlsbad, California with my beautiful wife and children.

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