Foreclosure Prevention

Current tough economic environment, recent real estate gold rush and mortgage exubernce has left several home owners and investors facing for foreclosure on their properties.  The crux of the problem is that several home buyers and investors ended up borrowing more money than what they could have afforded to pay back.  While it is too late to fix that there are some ways to prevent foreclosure.  Below are some tips:

1. Request Forbearance  - If you have recently lost your job or some serious medical expenses have come up, the bank may be willing to let you miss out on some of the payments.  You should contact your bank and see if they are willing to work with you.  The bank will postpone your payments and add any acrrued interest to the principal which will be due later. 
2. Try Selling Your House - Even though the real estate market is doing really bad, you still may be able to sell your house. and gracefully exit your mortgage.
3. Ask Family and Friends - See if your friends or family are willing to loan you some money or take a stake in your home to help you with some payments.
4. Arrange a Short Sale - Short sale is a pre-foreclosure state where you can work with your bank and give up any rights to the property.  In this scenario, banks will try getting as much money as possible by selling the house below market value without you going through foreclosure or bankruptcy.
5. Seek Federal or State Assistance - Federal Government or your State Government may be able to help you by negotiating with your bank.  Some non-profits may be able to help you as well.