Only someone who has been through the trauma of losing a home can understand the feelings or range of emotions that distressed homeowners experience. They are normally too upset or confused to

think about their options clearly and as a result do nothing. They suffer from countless sleepless nights and hope that the whole situation will fix itself. As a result they hesitate to contact the bank or the lender to work out a solution to their unfortunate predicament.

There are various ways that homeowners in this situation can stop or delay the foreclosure process. The information that follows is just that ...information. If you need help, seek the advice of a professional who specializes in foreclosures.

What is the first thing that the homeowner should do if they find that they cannot make the house payments? Contact their lender even if they end up losing their property. Why? Because Foreclosure is possibly one of the worst things that can affect your credit score.

One of the first options available to distressed homeowners is to try reinstating the mortgage. This is why it is important for the homeowner to contact the bank or the lender as soon as possible in

the foreclosure process. They need to verify that reinstatement is an option. Reinstating the mortgage would mean paying all missed payments and any late fees. This could mean a new loan, refinancing with a mortgage company or a revised payment schedule with their lender.

The next option could be to contact the lender requesting a loan forbearance. The lender may then agree to delay payment for a short period or enter a partial payment plan for a certain period on the condition that they manage to make up their payments by a specific date.

The financially distressed homeowner could also contact the bank or lender about Loan Modification or Repayment plans. The mortgage modification plans consists of adding past payments and late fees to the total loan amount and the homeowner pays off the sum over the life of the loan. A repayment plan consists of including a payment of a portion of the overdue amount with the regular payment until the overdue amount is recovered.

These propositions are unlikely to succeed unless the circumstances surrounding the income of the homeowners change. If they are already having trouble making their monthly mortgage payments how can they be expected to make higher payments.

Another option is for the homeowners to cut their losses and offer the lender a deed in lieu of foreclosure. This may be the option if the homeowners have no hope of recovering from the predicament they find themselves and have little of no equity in their property. They agree to hand over the property to the bank or the lender and thereby side-stepping, what could be, a public humiliating foreclosure process.

One more option for distressed homeowners is filing for bankruptcy. Bankruptcy temporarily halts the foreclosure process. It is not the ideal situation as the process would put a huge dent in the credit rating of the homeowner. It is an option if the homeowner needs time to restructure their debt and formulate a bankruptcy plan to make up back payments and continue with monthly mortgage payments.

We cannot always control the curve balls that life throws at us. There are times in everyone's life when we are placed in rather unpleasant situations. Most of the time it is not of our doing and we must learn to deal with them. The above information provides some of the options available to delay or stop the foreclosure process. If you find yourself in this position and facing foreclosure, contact the bank,lender or a mortgage professional as soon as possible. It is better to face the problem sooner than later. Remember the longer you leave it, the fewer your options.