What we are going to cover here is a guide to the foreclosure process so you don’t lose your home without a fight. If you have already explored all of the options, just start over and repeat the process. This is your home and if you are determined to keep it then you need to educate yourself. If you have tried for a home loan modification and been rejected, try to find out the reason for the denial and submit for more loan modifications correcting what was wrong. It might take multiple calls to find out what went wrong with your mortgage modification.

Here are some steps to help. Research the foreclosure laws in your state. Every state is different as to how they handle foreclosures. Know that no one will lose their home if they only miss one mortgage payment. There is a process and procedure in place for states and banks are required to follow the legal guidelines in your state. Let’s use California just as an example. If the lender follows the guidelines, this is what happens…If a homeowner misses three mortgage payments in California, a bank will issue a Notice of Default. This notice is public record. After the notice of default is recorded, you have 90 days to reinstate your loan. After 90 days, you will be given notice that your home will be sold at the courthouse in 21 days. This is the fastest your home could be foreclosed so don’t panic.

If a homeowner in any state is in line for a home loan modification and you have a sale date set on your home, you need to call your bank right away and ask for the sale date to be postponed. They will agree to continue to postpone your sale date until they make a decision on your mortgage application. The application does not stop the bank from accelerating the foreclosure but they will not take your home if they are still reviewing your application for a modification.

If you are behind on your mortgage and have been issued a notice of default, the first thing you need to do is call your lender to get status on your account. Yes, your lender calls you multiple times a day asking for you to make a payment but that’s not really the lender it’s the collections department. You need to get in touch with your lender to let them know you want to keep your home and you need their help. They will ask if you can make a payment and you should if you can. You don’t have to make more than one monthly mortgage payment even if they put pressure on you to. Just make one payment and this will help stall any foreclosure proceedings. If you don’t have the money to make a mortgage payment, then there is nothing you can do about that but you still need to call your lender. Do not ignore their calls if you are serious about a home loan modification.

The bank will ask if you have applied for loan modifications or a loan workout. If you haven’t applied, you need to submit an application to them immediately. Loan modifications take 4-6 months to get approved. You need to complete your application right away so you can get in line and get reviewed for a home loan modification. Again, even if you are behind or in foreclosure, you can apply for a home loan modification and a lender will postpone any sale date.

You have many more options in foreclosure than you realize. If you want to keep your home, you can do it but you have to be aggressive and work with your lender or whoever holds the mortgage. Don’t ignore your lenders calls. Some homeowners in trouble tend to worry a lot but to do very little. Don’t let this describe you. You need to be a person of action. Only through continued and well informed action can you expect to exceed!