Tips on how to stop foreclosure

he current economic situation has brought many people to a daunting position, wondering how to stop foreclosure. Just in September of 2008 there were almost 300.000 foreclosures in the US and it is considered that this number will rise significantly next few months, due to the increasing numbers of unemployed and increased interest rates. If you are having problems with your monthly payment you shouldn't just sit back and let your bank take your house away. It is a passive and definitely not acceptable solution, and it should be avoided by all means. Foreclosure is something that could be stopped or just slowed down.
You just need to know what to do and how, so as to stop foreclosure. Lets see some tips that can help:

- Contact your lender. If your bank has started calling you on sending notices on late payments, then you should not ignore them hoping that the problem will magically disappear, because it simply wont, and is the worst thing you can do because you deteriorate the relationship with the bank. Lenders don't want to foreclose because this is related with many expenses and procedures for them, so they are likely to work on a solution, provided that you are interested in it as well. The lenders can restructure and modify your loan so that it becomes more affordable to you, because this is the way to get their money back. If you contact your lenders early, you will take advantage of a great opportunity to work out a plausible solution.

- Try to refinance your house. If for some reason the modification doesn't work, then your second option is to try to refinance the house, getting a lower interest rate and, thus, lower monthly payments if possible. This is the start of a new loan which can pay off the previous one and could mean better terms for you. You can refinance using the existing lender or even a new one.

- Sell the house: Probably this is not the most desirable solution because you don't want to lose the house in any case, but its better to sell it and get some money to pay off the debt and keep some on the side, rather than lose the house for a less amount of money. Its not a very practical idea today, since the real estate market is quite slow, but in any case you don't have anything to lose. If you manage to sell it you can definitely pay off the debt and stop the foreclosure that will have an impact on your credit history as well. Of course in this case you will need the permission of your lender, and if you opt for such a solution you should ask for it before the house is put up for sale.