A foreclosure will effect your life and finances for a long while to come. Specifically, a foreclosure remains as a huge black mark on your credit reports for years. That, among other reasons, is why you should avoid a foreclosure, which is possible by negotiating with your mortgage lender.

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.

Some banks, in the interest of avoiding foreclosures with their properties, will agree to sell a house quickly for less than its market value. This is called a short sale. It can stop foreclosure, but its probably more beneficial to the bank than it is to you. It acts very similarly to a foreclosure in terms of reducing your credit score, though a short sale will mean that you could be eligible to buy a home again much sooner.

If you find there’s absolutely nothing you can do to prevent foreclosure, then be prepared for the following process to unfold:

After you miss the first payment you will get a Notice of Default in the mail.

Expect your phone to start ringing where trained collection phone agents try and get you to pay even modest sums towards the default amount.

After 90 days, foreclosure begins to look unstoppable as the option for the bank to foreclose on your property opens up.

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.

Discover how a credit attorney helped a local couple get qualified for a mortgage with a bad credit score by deleting charge offs and collection items. You can also visit creditforcouples.com to get a free credit repair letter or call 1-866-246-7311 for a free consultation with a credit expert.

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