When homeowners are facing a sheriff sale within thirty days, they are seriously running out of time to save their homes from foreclosure. Most solutions that they may have qualified for would take longer than a period of a few weeks to put together and successfully implement, and a pending public auction of the property will scare away many potential sources of help. Many options will simply not be available at all at this late point, especially if the homeowners have waited this long without working on any other plan, and fees, costs, and interest will have accumulated to staggering heights. There are, though, a number of ways that homeowners can begin working on a solution to foreclosure, even if they have less than thirty days.

One short disclaimer, though: the longer the homeowners wait to begin any plan to stop foreclosure, the smaller the chance of success. While they may be able to get together all the important documents, persuade their foreclosure help company or mortgage broker to get the process done as quickly as possible, and attempt to schedule a closing date or final agreement date within the shorter time frame, nearly everything has to go flawlessly. If there are a couple of delays, a few days here and a few there, this may mean the difference between saving the home and just running out of time. Thirty calendar days to save a home is really only twenty business days, and not every company will be willing to put their entire business on hold to focus on one case of a potential client who has already proven their inability to pay the mortgage during a rough time.

However, most homeowners will attempt to save the home until there are no options left and time has run out. Fighting until the end is their right and they may find that one of various ways to stop foreclosure is appropriate and can be implemented quickly. But, the first thing that foreclosure victims with little time should do is contact the lender and its attorneys and request more time. This should be done only when there is a plan in the works to save the home, and documentation can be provided to the mortgage company in order to back up the claim that the house will be saved if the homeowners are given more time. The lender can easily order its attorneys to stop the sheriff sale, even up to a day before the scheduled date. But, if the homeowners do not have a realistic plan, or it is just a few days before the sale that they contact the lender, it may be easier and less expensive for the mortgage company just to go through with the foreclosure auction than to save the home.

If the lender is unwilling to postpone the foreclosure auction, and the homeowners are still intent on putting together a plan to avoid foreclosure, one of the last options may be filing bankruptcy. Consulting with an attorney and filing a Chapter 13 to stop the sale will put the homeowners under the protection of the law and allow them more time to work on a longer term solution. Of course, the bankruptcy will put the entire foreclosure process on hold, and no other option may be completed while the home is under the supervision of the courts. But there is nothing preventing the owners from planning for their future, examining other solutions, and then dismissing the bankruptcy voluntarily if they can quickly close on a new loan or sell the property, for example.

No matter what option is being considered as a potential solution to the problem, the homeowners will most likely need at least two important pieces of information. First, they will have to prove their financial status is now stable, and that the financial hardship they experienced was a temporary setback that will not be experienced again. They should begin gathering their financial documents that will allow them to qualify for a repayment plan or workout solution with the lender or apply for a foreclosure loan. The second important piece of information they should have is a current valuation of the property and some sort of title search, in case they are selling the home or doing a refinance to avoid foreclosure. This information will put the homeowners ahead of the companies they are working with, as they will be able to produce any document readily and submit it. It is better for this information to be assembled as early as possible, so there are no delays seeking out long-lost documents or waiting for property information. When there is so little time to work out a solution, every single hour can make a difference.

The less time that homeowners have to find a way to stop foreclosure, the less likely they will be to find success with any option. Especially when there are less than thirty days, it is imperative to find a solution immediately and begin working on it, as well as request more time from the mortgage company. If the lender is unwilling to budge and postpone the auction, bankruptcy to stop foreclosure may need to be considered as a last-ditch effort to gain the time needed. Although they should begin working on saving their homes as early as possible, the old saying of "better late than never" applies even to foreclosure victims. Time is the most important aspect of the foreclosure process and the most valuable tool available to homeowners, but even homeowners with little time can still find a plan and successfully get out of foreclosure.

One common method that homeowners in foreclosure may have available to save their homes is to put together an agreement with the mortgage company to repay the amount they are behind over a period of time. This is called a forbearance agreement. Another similar option is working with the lender to alter the terms of the loan through a mortgage modification, which may result in the missed payments being put on the back of the loan, or the interest rate being lowered for a period of time. Both of these plans can give homeowners an important opportunity to get back on track with the mortgage, but lenders have strict guidelines that must be met to qualify for this type of program. Homeowners will have to fill out various forms and submit their personal financial documents in order for the bank to consider offering them one of these solutions. The importance of having these documents completed and accurate can not be overstated, as banks may just let the file sit until the package is complete.

Possibly the most important document the homeowners will need to submit is a hardship letter, explaining how they fell behind and what they have done to recover from the hardship. They should also state how the problem has been solved so that it does not recur in the future. This gives the homeowners an opportunity to describe the crisis as beyond their control, such as sudden medical problems, a death in the family, divorce, or job loss, among other possibilities. Often, the hardship letter can contain various solutions that the foreclosure victims are proposing the bank consider, as well as statements that they will be able to pay the mortgage on time from now on. The hardship letter is the tool homeowners use to make their case to the mortgage company of why they should not be foreclosed on, but given another chance.

Another important piece of the financial puzzle for the bank is recent paystubs, showing how much the homeowners earn. The mortgage company will want to evaluate whether or not there is a strong possibility of the loan being repaid in the future. A current stable income is one of the best ways they can decide how much the homeowners can reasonably afford, and how long the payment plan term should last. Obviously, since the foreclosure victims are attempting to pay their normal payment as well as a portion of the arrears every month, the lender will have to make sure this does not take up too much of the homeowners' income. If the repayment plan is too expensive, the loan will go back into default and foreclosure. The paystubs should show income over at least a period of one month, and they should be recent and consecutive. Submitting one from August and another from November does not show a stable income.

Bank statements are also important, for two reasons. The first is to show the lender that there is an emergency fund or extra cash in the bank that the homeowners can use if they fall behind again. The second reason is to show the bank what kind of spending habits the foreclosure victims have engaged in since falling behind. If they have been saving money or using their lowered income to keep on top of other bills, then the bank will look more favorably on offering a payment plan or loan modification. However, if the bank statements show that the homeowners have been spending money on unnecessary items, such as frequent shopping trips or online purchases, when they could have been saving money to pay the mortgage, this indicates to the lender that the homeowners are irresponsible with their money and will have trouble in the future paying the mortgage. Bank statements should also be recent and consecutive in order to give the bank a more general overview of the homeowners' spending habits.

The final documents that homeowners will need to present to the bank are tax returns for the previous two years. Tax returns show the lender that the homeowners have generally stable income, but suffered from a temporary hardship causing them to fall behind. This is important, because it serves as evidence backing up the claims made in the hardship letter that the crisis was involuntary, unavoidable, and uncommon, although it has not been rectified. Simply filing tax returns also shows that the homeowners are not trying to get out of paying their federal income taxes and shows that they were not just trying to get out of paying their mortgage for a few months. But the actual financial data will be most important, as a stable or increasing income will prove to the lender that the homeowners are generally financially stable over the longer term.

Besides these documents, lenders will often have their own forms and financial status reports that must be filled out. But homeowners who are working with their lenders, or working with a loss mitigation company to deal with the lender for them, need to be aware of the importance of having these documents. Without all of them, the mortgage company can not make the most informed decision possible about the current state of the foreclosure victims' finances, and they will turn down the proposal for a repayment plan or loan modification. It would be a tragic occurrence if the homeowners lost their homes to foreclosure simply because they did not have this information readily available to be submitted to the lender. Thankfully, loss mitigation companies and the banks provide checklists to the homeowners to make sure they have submitted everything necessary, but a failure to read and comply with these documents will typically result in a failure to save the home.

Filing bankruptcy to stop foreclosure is one of the most important decisions homeowners will make when faced with the loss of their homes. It is often the least-desirable option to save the home, due to the negative credit effects, but it can be considered as a last-ditch or backup effort if all else fails. Especially if the homeowners are running out of time and the lender is unwilling to stop the sheriff sale, bankruptcy may be one of the only options that would give the foreclosure victims some extra time and an opportunity to put together a longer-term solution to the problem. But knowing when to file bankruptcy and which type is most appropriate can be just as difficult of decisions as the initial one to file in the first place.

All homeowners, when considering bankruptcy to save their homes, should first consult with a lawyer before filing the actual paperwork with the courts. Having competent legal counsel ensures that the process is followed lawfully and that the foreclosure victims will be adequately represented in dealing with the court system and their creditors. In fact, consulting with an attorney about bankruptcy and other legal options should be one of the first things homeowners do in a foreclosure situation, whether they are seriously considering filing at this early point or not. Having the plan as a backup and not needing it is much more important that needing it and not having enough time to implement the plan. When the lender has hired attorneys to sue the homeowners for the house, it is in every homeowner's best interest to seek out legal advice that will help them understand the situation and what are their rights under the state foreclosure laws.

Of course, as we recommend over and over again, homeowners should do some research on their own before interviewing potential attorneys, so that they understand how the process will work and will be far less likely to find that they are being taken advantage of by an unscrupulous attorney. Having a basic understanding of the foreclosure process and what is involved in filing bankruptcy to stop foreclosure is essential for homeowners to keep control of their homes and the methods used to end the foreclosure. They should never blindly trust anyone, not an attorney, mortgage broker, or foreclosure specialist, without a basic understanding of how foreclosure works and how bankruptcy can affect the process.

Possibly the most important consideration in the decision to file bankruptcy is how expensive the payment plan will be. During a Chapter 13 that includes the house and all mortgage loans, the homeowners will be obligated to pay both the court-ordered plan and the regular monthly payments. For homeowners not yet in a stable financial position, this may just be too much to manage and they will be in danger of falling behind again. If they miss a payment during a Chapter 13 bankruptcy, the lender can move the court to dismiss the case and they will be able to proceed with the foreclosure as if the bankruptcy never happened. The bank simply picks up where it left off before the Chapter 13 was filed, and the homeowners can not rely upon this option in the future to save the home.

Another important consideration is how much income would be freed up if the homeowners kept the house of the bankruptcy and filed a Chapter 7 instead. This would wipe out some of their unsecured debts, like credit cards or personal loans, and may put enough money back in their monthly budget to afford to get back on track with the mortgage. It is important to consider how much money would actually be freed up, and if the mortgage company would accept a repayment plan where the homeowners pay extra every month until they are caught up. If the situation is right, this may be a more beneficial solution for all parties involved.

Of course, one of the most useful aspects of filing bankruptcy is simply that is allows the homeowners to put the entire foreclosure process on hold. The law lets them take a break while they seek protection under the court and establish a plan to get their payments back on track. Even if it is just a few days or weeks before the foreclosure auction, filing bankruptcy will immediately put the process on hold and stop the sheriff sale. In this case, the homeowners may be able to begin working on some other solution to the problem while they are given more time under the bankruptcy plan.

In most circumstances involving missed mortgage payments, filing bankruptcy to stop foreclosure should not be relied upon as the best solution. Especially if the homeowners' income has not recovered from the hardship that led to foreclosure, bankruptcy can result in a very expensive payment plan that is simply unrealistic. Other options should be considered both before and after filing, such as refinancing, selling, or giving the property back to the bank, depending on the specifics of the situation. Also, it is very important that homeowners seek out competent legal counsel during any part of the foreclosure process, but especially when they are considering filing bankruptcy to stop a sheriff sale or help them save their homes.

Besides missing the first mortgage payment that leads to the foreclosure process, the most important event during foreclosure is the sheriff sale of the property. This is the event that will effectively transfer ownership of the house from the current owners to whomever wins the auction (usually the foreclosing bank). Many homeowners are able to postpone a sheriff sale if they are working on an option to save the home, but stopping the auction numerous times may be more difficult. The homeowners, though, should take every opportunity to gain more time, even if they have realistic chance to prevent the foreclosure from taking their homes.

When a bank postpones a sheriff sale, they typically have to begin the entire process over again of publicizing the auction in local newspapers and in public places throughout the county. Although this will cost them more in the long run, since they hire local attorneys to do this, they would rather have the loan paid back in full by the homeowners instead of losing tens of thousands of dollars at auction. But this is one reason why homeowners may ask for an additional week or two and end up with a month or more of time that they can work on a method to avoid foreclosure. Depending on how much publication of the sale needs to take place, and this depends on state foreclosure laws, they may have more than a month to keep working on saving their homes.

The decision to stop a foreclosure auction lies almost entirely with the foreclosing lender. They can postpone the sale as many times as they want, with the same house being published in the newspaper week after week, until the bank simply grows tired of the homeowners and goes through with the county auction. Lenders typically decide to postpone only if they believe the homeowners are putting together a viable solution to the foreclosure, such as refinancing or selling, and the homeowners are able to prove they are working on such a plan. Of course, the workers at banks are also human beings (sometimes), and they may be willing to postpone the sheriff sale just because a client calls them crying and begging for more time. This tactic should be used sparingly, although it can be even more effective than any other way to ask for more time.

If the house is quickly approaching a sheriff sale, homeowners should immediately make contact with the mortgage company and find out what they need to do to get more time. A plan to stop foreclosure can be offered to the lender, and many of the representatives will be sympathetic to foreclosure victims. Especially in larger banks, the homeowners may call and speak with a different person every time who is willing to try to postpone the sale. This can result in a great amount of additional time being given to homeowners to work on their plan to save the home.

Although it may seem as though the bank would actively want to pursue the foreclosure and get it off the books, so to speak, many large lenders are working on hundreds or thousands of foreclosed properties. Many of the owners will simply give up on the home or be too frightened to ask for more time. The ones that are seriously looking into ways to stop foreclosure, though, will be able to convince the bank that they deserve more time. The bank would willingly offer more time to solve the problem, and it is easy enough to postpone the foreclosure auction. The extra fees and interest will just be added to the balance in the end, anyway, and be counted as an even larger tax deduction for the lender.

Foreclosure victims who are actively pursuing an option to save their home, even if it is the tenth option in as many months, often find that their lender is still willing to work with them to give them as much time as is reasonable. Of course, the patience of any company will wear thin after a length of time, but homeowners should take advantage of their options and examine every option possible, if they are seriously interested in stopping foreclosure. Most banks would rather have their money instead of the home, and clients would like to keep the home and pay back their mortgage obligation. This creates a situation where it is in both parties' best interests to continue working together for as long as there is a reasonable solution to work on.

For many homeowners in a financial hardship, when it rains, it pours. They fall behind not only on the mortgage, but also on many of their other debt payments, including credit cards and unsecured loans, among others. Obviously, saving the home should be the first priority, if it is a possibility, but by the time the hardship is over and they have worked through a plan to stop foreclosure, the homeowners may find out that their other debts have been charged off and sent to collection agencies. These companies will often begin to make threatening phone calls and intimidate the debtors with lawsuits, poor credit, or worse. And homeowners would like to get their credit back on track, but they may just not have the financial ability just after the foreclosure. In this case, they may be able to begin working on these other debts and eliminate them completely.

Fortunately for homeowners, most creditors, even large credit card companies and banks, fail to keep good records of the debts they own. They may not have original contracts, complete payment history, or any substantial information on the homeowners, and when they sell the debts to a collection agency, this new company may have even less information and be even worse at keeping it in good order. Of course, this does not discourage the debt collector from attempting to get as much money from the homeowners as possible, and proceed with a lawsuit anyway, but homeowners are protected by various laws to make sure that the collection agency has a valid right to pursue the debt. The most important of these laws is the Fair Debt Collection Practices Act, commonly abbreviated to FDCPA.

The FDCPA was designed to regulate these collection agencies when they attempt to pursue debtors, and defines what a debt collector is, and what their responsibilities are under the law. Many debt collectors may be law offices, but they are considered to fall under the regulations of the FDCPA. The act also outlines the rights of debtors to request validation of the debt, and what information needs to be provided to qualify as validation. If the collection agency can not verify the debt, they can not continue to try to collect it. However, the homeowners would need to request validation before they are sued by the collection agency, in most cases.

Debt validation is one of the most effective tools that homeowners may use after facing foreclosure, in order to begin repairing their credit. When their credit records are full of charged-off credit cards now being pursued by collection agencies, the technique can help them eliminate some of this debt and get it removed from their credit history. If the collection agency has not followed the law (and many of them violate it numerous ways! ), they can not try to sue the homeowners or go after their assets.

One of the more egregious ways that debt collectors fail to follow the rules is by failing to be licensed under state laws. Unless they are specifically licensed to operate as a collection agency in a particular state, they can not pursue a debt. Not every state has debt collector license laws, but many do, and debtors should check to make sure a company is following both federal and state laws. These laws are designed to protect debtors from aggressive or illegal tactics used by collection agencies, and to ensure proper procedures are followed.

If a homeowner finds that he has already been sued by the collection agency, and a default judgment has been granted, this does not mean the debt collector followed the laws. Most courts will simply assume they did comply with the law, if the debtors did not show up to defend their position, as many do not. The collection agency wins by default, and the debt is presumed to be valid. Then, they can begin the process of attempting to garnish wages, put a lien on a property, or other tactics allowed by law. The debtors at this point would have to go to court and try to have the default judgment vacated. Especially if they can show good reason why they did not respond to the complaint in the first place, and the debt collector has violated laws, the judgment may be dismissed entirely and the debt would have to be removed from the homeowners' credit report.

Even then, the debtors' work may not be done. If the collection agency is in violation of laws, the homeowners may wish to consider suing their creditors in small claims court. Each violation of the FDCPA (and this is only one law among others) may result in $1,000 being awarded to the debtor. This money, representing penalties to the debt collector for not following the law, could be used by the homeowners to pay off other debt or establish an emergency fund in case of another financial hardship.

Obviously, none of these techniques (validating a debt, vacating a judgment, or suing creditors) is a simple matter, and specifics vary from state to state and by county. But very few debtors are aware of the resources available to them that are specifically designed to provide them with aid and protection under the law. There is a vast amount of case law, opinion letters, and general advice online, and homeowners interested in getting out from under their collection agencies and repairing their credit are encouraged to begin researching on their own. The payoffs for a few hours or days worth of work can save them thousands of dollars in interest charges by repairing their credit, and allow them to qualify for a new home loan sooner after the foreclosure than if they simply allowed the debts to remain unchallenged.

With so many foreclosures across the country, banks are now beginning to own more and more of the available real estate in America. But, after the foreclosure process has ended, the banks often do nothing with these properties, leaving them to sit on the market for months or years. While the former homeowners are forced to find a new house or apartment to rent, the bank will hold onto an empty house that they take no care of. However, although the homeowners may wish to remain in their property and rent it while the bank attempts to sell it, lenders will not get into the property management business, preferring instead to let the empty house sit and bring down the quality of the surrounding community.

The bank will wait until they are able to sell the property on the open market, no matter how long this takes. All bank-owned real estate is sold in "As Is" condition, due to the fact that the bank will not manage the property or make any necessary repairs after the former homeowners move out. Even if all of the pipes are stripped of the house, or it has suffered water damage due to a sump pump breaking down during the bank's time or ownership, they will not do any repairs. But, if the bank gets a reasonable offer to purchase the home in this condition, they will be willing to consider it seriously. With the current conditions in the market, though, home buyers may be able to afford a new home in good condition, rather than potentially damaged goods that have undergone a recent foreclosure.

Even if the bank has a house in its inventory for a long period of time, they will always be reluctant to enter the property management business. This is due to one main reason: liability in case of damages. If a tenant is renting a house from a local landlord, and they incur some injury that is the owner's fault due to negligence or otherwise, the renter may be able to sue the landlord and win a judgment of several thousand or tens of thousands of dollars. This will depend on the injury suffered and how deep are the pockets of the landlord, but the tenants will not be able to get a judgment of millions of dollars, due to the fact that the landlord can not afford to pay such high damages, which will be viewed as excessive and not fitting the liability.

On the other hand, this situation could be quite different if the landlord was a large multinational bank. If the renters suffered damages, they may be able to sue for much higher amounts. For example, renters may be able to make a few rent payments of $2,000 total, and then suffer an injury which results in a $500,000 judgment against the bank. This judgment would not seem excessive, since the bank may have billions of dollars in assets. But this huge liability creates reluctance for banks to do anything with properties they own, and is one of the reasons all houses are sold on an "As Is" basis. They do not want such high potential liability when the homes may be worth far less that what they could eventually be responsible to pay.

Lenders would rather let their properties sit on the market for as long as it takes to find a buyer. They will not worry so much about broken windows due to vandalism, or newly homeless people moving into the neighborhoods and squatting in these properties. The eventual buyer will have to worry about such circumstances, and the bank does not want to have to spend any more money on these properties that they have already suffered losses on due to the foreclosure process. Letting an empty house sit, while they pay the property taxes is the most cost effective solution for lenders.

Although this situation is obviously bad for the community, it works out better for the bank (which may be based in New York, Dubai, or someplace else in the world), since they will not have to worry about being sued by tenants for millions of dollars due to justified or fraudulent lawsuits. In fact, the banks may not even have enough resources to combat all of the potential lawsuits, if they own many foreclosed homes. Thus, neighborhoods hit hard by the ongoing foreclosure crisis will experience increases in violent crime, drug trafficking, and homelessness, while current homeowners will watch the value of their houses stay low due to more run-down homes and empty properties subject to vandalism. The banks, though, will quietly wait until someone purchases these homes and avoid the legal liability of managing property. Again, it is up to the communities themselves to find ways to deal with the foreclosures, as they can not expect the lenders even to take care of the properties they now own, nor have an interest in improving the quality of live of residents living in the neighborhood.

Happy Thanksgiving to all visitors to our site!

From,
Everyone at ForeclosureFish.com

With the current foreclosure crisis in America still ongoing, it is becoming a common practice for people, qualified or not, to offer their explanations for what has caused such a meltdown in the mortgage industry and steep declines in property values. Many of the reasonings offered are well thought out and serve to highlight various aspects of the economy and how it is being affected by record foreclosure rates. No single discussion of the issue, though, can provide a comprehensive analysis of what has caused the problems faced by homeowners, and ours presented here is no different. However, the more that homeowners are exposed to different explanations of the foreclosure crisis, the better able they will be to prevent facing foreclosure again in the future.

The most commonly cited cause among armchair analysts is simply greed and corruption on the part of nearly everyone in the mortgage and real estate industries. And, of course, there were massive levels of greed among the lower level workers and participants in the market. Appraisers over-valued homes, Realtors listed them for these unwarranted prices, and loan officers provided loans at higher values in order to reap higher commissions. Homeowners were also not innocent, as many of them lied on mortgage applications to increase their incomes and qualify for homes they knew they could not afford for the long term. Banks provided incomprehensible mortgages with low teaser interest rates, basing the qualifications on the applicant's ability to pay the artificially low rate, not the reset payment even based on current market conditions. These circumstances all combined to create a highly over-valued real estate market and vast numbers of homes sold families who simply could not afford them.

Geopolitical concerns relating to oil and gas prices also began to contribute to homeowners' financial problems. Finite (and falling) energy supplies and growing populations in foreign countries pushed up demand for various forms of energy, causing an increase in costs. Prices have risen for food (grown on farms using oil-powered machines and oil-based pesticides and processed in industrial plants), gasoline (rising demand, falling quality of oil from imports), and home energy (natural gas-fired power plants), to name a few concerns. These rising prices are naturally passed along to the end user of the products, and consumers often spend more time complaining about high prices instead of reducing their dependence on such items or going without. Of course, every budget has its own break point, and many homeowners facing foreclosure who had negative savings rates for months or years before missing a payment inevitably reached theirs.

A third cause is the falling value of the dollar, decreasing the purchasing power of ordinary Americans. Devaluation of the dollar causes imported goods to increase in price, contributing to higher energy prices, food prices, and expenses for nearly every good sold by the largest retailers. Homeowners are also robbed of their money in the form of inflation caused by the federal government borrowing money and printing money to wage war and provide social programs, thereby devaluing the dollar further. Once Congress passes a budget and realizes it will not bring in enough money to pay for every program, they rely on borrowing money. When this does not make up the shortfall, they simply print the money and have the first use of it. This inflation takes away the wealth of citizens, as their once precious dollars become as common as confetti and worth about as much.

The complicated world of collateralized debt obligations, hedge funds, and packaged mortgage investments have also contributed greatly to instability in the market. Convoluted investment instruments have been used to package subprime loans and sell them on the market to hedge fund investors and pension funds. Now, with so many foreclosures, it is doubtful who even owns these loans in default, as they have been bought and sold so often by institutional investors. In some cases, the courts have been unable to verify who actually owns the debt and is legally allowed to collect the payments or foreclose on the homes that have defaulted.

A final cause discussed here is the prevalence of credit as a means of financing one's life. With credit applications available in nearly every college classroom, during commercials on every television show, and sponsoring sports and community events, an incredible percentage of people have faced financial issues at one time or another due to their use of credit. This overuse of credit through cashing out equity, using home equity lines of credit, or frequent credit card use, often combined with an unexpected financial hardship, such as a loss of job or medical expense to push homeowners into foreclosure. If credit is relied on to prop up the family's budget, and then a payment is missed, one of those shaky supports falls away, interest rates increase, and it gets more difficult to keep on top of that bill and others. Miss a few payments, multiply the same experience by numerous homeowners, and it is easy to see how that can affect markets.

Again, no discussion of the causes leading up to the declines in the real estate market can conclusively explain the effects. But, homeowners, whether they are in danger of losing their homes or not, would do well by researching some of the reasons their family and neighbors may be facing foreclosure. Only by learning from the mistakes of others, and the traps designed to facilitate the loss of their homes, can any homeowner realistically expect to keep his or her property out of the foreclosure process.

Although this blog has examined numerous topics over the past year of its existence, one of the few topics it has not touched on in a less than tangential way is how the actual foreclosure process works, from beginning to end. This is a very broad topic, of course, and one that is dealt with differently in every state, but a short discussion can allow homeowners to formulate a general idea of what to expect before, during, and after a financial crisis that causes them to miss their mortgage payment. Without having a general idea how how foreclosure works, homeowners will find it very difficult to decide on which options they may qualify for to save their homes. They may waste time looking for that perfect solution that does not exist, or they may pick the wrong option to work on and lose their homes. Understanding how the foreclosure process will be conducted by the bank and the court will help them avoid either of these consequences.

In general, homeowners should begin worrying about the possibility of foreclosure as soon as they experience a financial crisis, whether it be a loss of job or serious illness or disability, or otherwise. Although homeowners who have read this blog before have been counseled numerous times that they absolutely need an emergency fund, they should not rely upon their savings lasting longer than a few months, at the most. At this point, when they are having difficulties maintaining their income, but have not yet missed a payment, it is also a good idea to contact the mortgage company and explain the situation to them, while emphasizing that it is not yet out of control. The lender may be able to lower the rate for a period of months, or allow the homeowners to miss a few payments which will be paid back after their income has recovered.

But it is once the homeowners begin missing payments without a prior agreement with the mortgage company that foreclosure becomes a serious concern. The bank understands that most families who miss a payment will quickly recover and get back on track, so they will not put a house into foreclosure if only one or two payments are missed, especially if the owners are keeping in contact to explain the situation. At a certain point, though, depending on the individual lender, they will have to begin foreclosure proceedings to sell the house at a public auction and attempt to pay off the defaulted loan. Once they decide that this is the only realistic way their loan will be paid back, they will begin the foreclosure process.

Banks do not pursue the foreclosure on their own, however; they hire local attorneys to file the paperwork with the county court and publish notices in local newspapers. The attorneys will attempt to contact the homeowners to arrange payment of the loan, either to reinstate the payments or pay if off in full. As many homeowners can not afford either option at that point, the lawyers office will sue them on behalf of the lender. Homeowners will be sent paperwork regarding this suit, and be requested to appear in court at a default hearing. If they appear, they may be allowed more time by the court to find a solution to prevent foreclosure. Unfortunately, most homeowners will avoid this hearing, thinking that they will be sued right then and sent to a debtors prison for not paying their mortgage. The lender is given the default judgment against the homeowners, and the attorneys will begin moving towards a sheriff sale.

Under most state foreclosure laws, the sheriff sale needs to be published for a period of time in newspapers or public forums located in the county. This is one reason that homeowners may first find out about the foreclosure auction from a neighbor or family member who notices the property in the paper and alerts the foreclosure victims. At this point, the foreclosure process is quickly proceeding to a point where there will be no options left to save the home, as the family will no longer own the property at all. Although the sheriff sale can be stopped, giving the homeowners more time to stop foreclosure entirely, if there is a realistic solution to the problem, now is the time to pursue it. The longer the homeowners wait to save their home, the less chance of success will exist.

At the sheriff sale, the property will be auctioned off at a set starting price, which varies from state to state and county to county. In a small number of cases, a third party will purchase the home at the auction. Typically, the bank purchase the property back, though, and uses its own money to pay off the loan and take possession of the property. The sale can be confirmed within a week to a few weeks after the sale, and the homeowners will no longer be listed as owners of the house, and will have no right to remain living in the property, unless state law allows for a redemption period.

A redemption period is time given to homeowners after foreclosure that they can stay in the home and attempt to sell, refinance, or otherwise pay back the amount due. The lender can not start the eviction proceedings until after the end of redemption, and the homeowners do not need to have any plans to keep the house to remain living there. Although the bank owns the property at this point, the law allows homeowners to regain possession. Not all states allow homeowners a redemption period, and the length of time varies widely from state to state, which makes it necessary for homeowners to research what protections their own state's foreclosure laws allow them.

After the sheriff sale is confirmed in states that have no redemption after the auction, and after the end of redemption in states that allow for such protections, the eviction process will begin. The homeowners will be sent paperwork again by the court and the lender's attorneys requesting their appearance at a hearing, the purpose of which is to order the homeowners to leave the property by a set date. If the homeowners appear at this hearing, they may be given extra time to move out, or even purchase the property back from the bank. However, if they do not appear, the lender will be given possession and the county sheriff will be ordered to conduct the eviction.

The eviction process itself can take as little as a week to a month before the sheriff actually shows up to remove the homeowners from the property. Due to constraints on the time and resources of the department, and the number of other investigations and foreclosures pending, foreclosure victims may have a few weeks to find a new place to live, although they should not be wasting any time at this point. The sheriff will typically post a notice on the property at least three days before the scheduled eviction, but three days is very little time to pack up an entire house and move out. The family may be able to negotiate for a few extra days or a week, at most, in order to effect a peaceful solution, but there is no expectation of being able to stop the eviction process completely. If the foreclosure has progressed this far, the former owners should be more concentrated on moving on with their lives and starting over, instead of risking an embarrassing eviction witnessed by neighbors.

The foreclosure process differs from state to state, so homeowners should start researching what to expect by reading their foreclosure laws. This will give them more of the details that the above description glosses over, and will allow them to fill in many of the blanks, such as how long each stage will take, and what their and the lender's responsibilities are during the process. Though simply knowing how the foreclosure process works will not guarantee any homeowner will be able to avoid foreclosure, they will have a much better understanding of available ways to stop foreclosure and how much time they have left to save their homes.

One of the solutions to foreclosure that we discuss much less often than others is obtaining an equity loan to pay off the arrears and reinstate the mortgage. This is because it is one of the more difficult options to qualify for, possibly more difficult than a standard foreclosure refinance. However, for homeowners in the right situation, a second loan taken out of their equity can allow them to get current on their payments again and end the pain of foreclosure. Although it is certainly not suitable for every foreclosure victim, and should not be relied upon as the the only option to save the home, it is a solution that should be considered by every homeowner facing foreclosure.

The reason most lenders refuse to loan to homeowners in foreclosure is because of the pending judgment. The bank often files a lis pendens with the county courthouse, which shows up against the property. This indicates to other prospective lenders that a lawsuit is ongoing against the owners of the property, and there has been no resolution to the court proceedings yet. Many traditional lenders do not want to loan money on a property when there is such a danger of not being paid back. If the lawsuit ends up in a judgment against the homeowners for more than the home is worth, and the house is sold at a county sheriff sale, a second mortgage would more than likely end up with little or nothing. They will not loan the homeowners $50,000 and expect to be paid back only $5,000 or nothing at all.

In fact, it is most likely that a second mortgage company will refuse to give an equity loan for exactly this reason. They have no reasonable expectation of the total amount of the eventual judgment, so they can not be entirely sure how much equity the homeowners have to begin with. This makes it difficult to provide an equity loan when the amount of equity is in question. With the pending foreclosure, there is also very little reason for the lender to expect their loan to be paid back over time. Second mortgages often lose all or nearly all of their loan amounts once the property is sold at the foreclosure auction. This is due to the fact that few properties sell at auction for anywhere close to their current market value.

One potential use for an equity loan is if the property is behind in payments but the homeowners are not yet in foreclosure. In this case, while the first mortgage company will be adding in late fees and interest, the amount of equity in the property is relatively easy to estimate. There may not be attorneys involved or a lengthy court process at this point, so the homeowners can use some of their equity to secure another loan and pay back the amount they are behind. The further behind they become, however, the more difficult it will be to qualify for the equity loan, as more of the equity will be eaten up by missed payments and extra fees. But homeowners should attempt to qualify for this solution before it is too late and the option is no longer available.

When homeowners are working on a repayment plan to get the mortgage back on track and avoid foreclosure, an equity loan can allow them to quickly pay back the arrears and begin working on other goals. This is especially useful if the mortgage company is no longer reporting the loan as being in foreclosure on the homeowners' credit reports. Of course, if the workout program is still showing as a foreclosure, then this may be more difficult. The family may be current on the payments for the plan, but the bank does not take the property out of foreclosure until the end of the term when all arrears, fees, and interest is paid back in full. But if this is not the case, it may be well worth attempting to pull out some equity to pay off the plan, get the payments more manageable, and put some extra cash in the bank to use as an emergency fund in case of a future financial hardship.

Equity loans can be a fairly quick and relatively painless solution to foreclosure, which means they are difficult to qualify for and cease to be a solution at all the further into the foreclosure process a home falls. However, for homeowners who have just missed a couple of payments and are not yet being sued by the lender, or are working on a forbearance agreement or other arrangement with the bank to get the payments back on track, an equity loan can allow them to get current on the loan once more and put together a more substantial savings plan. Although there may be more hurdles to jump over to qualify for this solution to stop foreclosure, it should not be discounted or forgotten about when homeowners are putting together a plan to save their homes.

Tenants are often some of the last people to find out the house they are renting is going into foreclosure. The landlord often withholds this information, fearing that, if the renters knew of the pending foreclosure, they would stop paying rent, and the landlord would not have this money to rely on if he is attempting to stop foreclosure or just use the money to move on with his family's life after the process has ended. In all honesty, the tenants are still bound to the terms of the lease as long as the landlord still owns the home, and a pending foreclosure would not alter that fact. If the homeowners are unable to find a solution, though, it may be in the tenants' best interest to attempt purchasing the house, either before or after the foreclosure has gone through. This may allow them to make the jump from renter to owner, and avoid having to move out of a house that will soon be evicted by the county sheriff.

The first question that homeowners usually have is who should they buy the property from. They can make an offer to the landlord now, but the owners may want the full market value of the property, in order to pay off the loan in full and use as much of the proceeds as possible to begin recovering from the foreclosure. Of course, they may be willing to give a good deal to the tenants, who are helping them out of the difficult situation, and this humanitarian motive to purchase the home before the sheriff sale should be considered by the renters. However, if the landlord demands full market value, and is unwilling to work with the tenants, assuming an "all or nothing" attitude, another approach may result in a better deal for the potential home buyers.

In this case, where the landlord is unwilling to sell the home for less than full price, thereby giving the tenants a good deal for helping stop the foreclosure process, it may be wiser to wait until after the foreclosure auction when the landlord is no longer the legal owner of the property. He will no longer be able to negotiate a sale on a property he no longer has any interest in. It may be better for the potential buyers to work with the bank after the foreclosure sale to get a better price. There are good and bad points about this approach, though, both of which must be taken into account before moving forward with this option.

First, the bad. The tenants absolutely must contact the bank before the sheriff sale or very, very soon after in order to tell the lender they are interested in purchasing the home and that they are currently living there as tenants of the previous owner. During the entire foreclosure process, they should try and save up for a down payment and get qualified for a loan as soon as possible, so they can prove to the bank that they are serious about buying the house, working towards that goal, and not just trying to avoid getting evicted. The bank will have to inspect the house and have it appraised before they accept any offer, of course, so the tenants can expect the mortgage company to send out a Realtor or appraiser to get an accurate value.

This is assuming the bank buys the property back at the foreclosure auction, of course. This happens almost all of the time, but there is a chance a third party interested in the home will purchase the house and want to move in or hold it as an investment. They may be understanding of the renter's situation and willing to sell the property they just purchased for market value, but then the renter's potential great deal will turn into buying a house for full price. This is an outside chance, but worth mentioning, as it can put the renters back in the same bargaining position they were in with the landlord demanding full price to sell the property to stop foreclosure.

Now for the good aspects of purchasing a home after the sheriff sale. The first is the fact that the mortgage company will be willing to sell quick and for a small gain on what they purchase it for at the sheriff sale. The tenants need to find out what the selling price was at auction and what the true market value of the property is currently estimated to be. This will help them determine how much to offer the bank, although a wise bet would be to offer an amount somewhere in the middle of the auction price and the market value and back up the offer with a contract and qualification letter. If the offer is not made with a valid contract and some proof of being qualified for a loan, the bank will not take the entire process seriously, as there is no documentation to persuade them to hold off on the eviction process.

As long as the bank knows that the potential buyers are working on getting the home and can document the mortgage process as it goes along, the will be willing to hold off on the eviction process for a reasonable length of time. They will not want to pay to evict someone through the court system if the current tenants are trying to buy the house. However, they will not wait forever for the loan to go through, and a closing date should be sought after as quickly as possible. Every minor delay or setback can cause the bank to change its mind, decide not to extend the contract, and pursue the eviction and list the property on the open market. Time is of the essence in this situation.

Finding out that one is renting a home in the middle of the foreclosure process is often quite worrying to tenants. Although they are not legally released from the obligation to pay rent to the landlord for as long as he is the owner of the property, foreclosing banks will be quite sympathetic to renters in this situation. As long as the tenants become aware of the foreclosure with some time to spare, they may be able to get the funds together to quality to purchase the home and avoid being evicted. They may also have the opportunity to help out the landlord by assisting in the effort to avoid foreclosure and purchase the property before the sheriff sale. If this is not possible, even greater deals may await after the foreclosure auction has taken place. Although being a tenant in foreclosure can seem like one of the most distressing situation to find oneself in, the tenants themselves can turn it into a win-win situation.

Most homeowners in foreclosure eventually turn to a source of outside help to receive assistance to save their homes. This may be through consulting with an attorney to discuss filing bankruptcy to stop foreclosure, applying for a bailout loan from a mortgage broker, or seeking loss mitigation assistance from a foreclosure help company. With record numbers of homeowners facing foreclosure, though, scam artists will frequently try to take advantage of these situations. It is important for homeowners to do enough research on their own before they consult with foreclosure experts and, when they do find an individual to work with, they know what questions to ask and what "red flags" to be on the lookout for.

The first thing that homeowners should look for, before deciding which foreclosure help company to work with, is free information and advice. This can be found on literally hundreds of websites online. This will help the foreclosure victims conclude if they can stop the foreclosure process on their own, without taking the next step of working with a specialist. This is one of the key concepts that homeowners must remember: they should never trust anyone besides themselves to save their homes. If they do not know how foreclosure works and what can be used to stop it, then they are in much greater danger of being taken advantage of by a foreclosure scam.

Most homeowners, though, will realize that they do need outside assistance to work out a plan to avoid foreclosure. They should have a basic understanding of how the foreclosure process works and what options they may be qualified for. This will help them focus on only the methods of saving a home that are most likely to succeed, and will result in the most effective use of the time they have available. Also, being aware of various methods to stop foreclosure should persuade homeowners to consider multiple plans of action, rather than relying on just one expert or solution. In fact, every family facing foreclosure should have at least a couple of backup plans, in case their preferred solution falls through at the last minute.

The most successful plans to prevent losing one's home are the result of hard work by the homeowners themselves, rather than blind trust in an attorney, mortgage broker, or foreclosure specialist. Typically, the homeowners who are featured in news stories as having been taken advantage of by scammers are the ones who were running out of time, did not know how the foreclosure process worked, and put their faith in another's knowledge instead of their own abilities to solve the mortgage problem.

Avoiding scams, though, can be quite simple, as long as homeowners ask themselves and the companies they choose to work with some very pointed questions. A few concerns are listed below, and homeowners who have done enough foreclosure research on their own can put together numerous additional questions.

1. Have they offered any free advice to homeowners?
2. Do they write articles or participate on forums to answer questions?
3. Are there any complaints about the company, and do the complaints seem sincere and legitimate?
4. If there are complaints, did the company respond to them adequately?
5. Does their website offer free help and explanations or is it just a way to get someone to call without understanding the process?

   Foreclosure victims who take the time and effort to research various methods to avoid foreclosure and the companies that offer these services will be much better prepared to save their homes. The more that homeowners understand about the foreclosure process and what resources are available to stop it, the less likely they will find themselves taken advantage of by a foreclosure scam, or find that they have used the wrong method. If one of their plans falls through when they are running out of time before a sheriff sale, the bank will be much more willing to work with them and postpone the auction if they are aware that the homeowners have been working seriously on ways to stop foreclosure, and if they know that the homeowners have a backup plan they can quickly implement. Thus, the successful homeowners who save their homes and begin the process of financial recovery with a head start are the ones that have done their research and placed their trust in the only individual in whom it belongs: themselves.

Homeowners facing a financial hardship, even before they begin missing their mortgage payment, seriously worry about the consequences of foreclosure. Their most common concerns are being unexpectedly kicked out of their home by the county sheriff and having nowhere to go, how bad their credit will look with a foreclosure on their record, and the possibility of the bank suing them for a deficiency judgment after the sheriff sale. While all of these can be legitimate concerns for homeowners, they are all ones that the foreclosure victims can exercise a degree of control over. Although a foreclosure situation will have unique effects on the homeowners' lives, both personally and financially, their individual decisions regarding whether and how to stop foreclosure, and their financial habits before and after the foreclosure situation will largely determine the consequences after the process has been ended.

The first aspect of the foreclosure process that homeowners can influence is the bank's initial decision to foreclose on the property at all. While many homeowners will avoid the lender's collection calls and ignore mail sent by the bank, keeping in contact with them is often the best method for obtaining more time to save a home from foreclosure. The homeowners can often persuade the mortgage company to give them more time to recover from their hardship and find a solution and not begin the foreclosure process right away. The bank may decide to wait up to six months or longer after the first missed payment to put the house into foreclosure, as long as the homeowners are working on a seemingly viable solution to save the home. Thus, the more contact the family has with the bank, the more likely they will be given the extra time they need to avoid foreclosure entirely.

The same is true for the sheriff sale: the bank can and often will postpone the auction date if the homeowners are working towards a solution to their problem. If the homeowners are in the process of refinancing or selling the home, for example, the bank may allow them an extra few weeks or months to finalize the process. Especially if the bank knows they will lose a large sum of money on the foreclosure auction, they will be more willing to give the homeowners the benefit of the doubt and allow them extra time to work on a plan to stop foreclosure. All they want is the money that is owed on the loan, and if there is a strong possibility of gaining that, there is no reason for them rigidly to pursue the foreclosure and take the property straight to a sheriff sale that will result in a net loss to the lender.

The homeowners also have a degree of control over the credit consequences of missing numerous mortgage payments and having a foreclosure reflected on their credit report. Obviously, their score will start dropping as soon as they have missed a payment, and it will be at its lowest if the home is sold at the county sheriff sale. This is just one more reason for them to exercise their options in obtaining more time and postponing the foreclosure auction. But the effects of the missed payments on their credit will also depend on their other spending habits and payment history. If they are able to remain on top of credit cards, car loans, and student loans, their credit score will not drop as much as if they are behind on all of their debt payments. Credit scores in the high 400's are not uncommon for homeowners behind on everything, while homeowners who are just behind on the mortgage may be able to stay above 600.

This makes it important for homeowners to carefully consider how to spend their income during a foreclosure situation. It may be better to keep their credit score higher by paying all of their other bills and try refinancing with a new lender. However, this means their income can not be saved up to qualify for a repayment plan with the mortgage company. But if they save as much money as they can and fall behind on their other bills, they may be able to qualify for a workout solution with the lender but their credit will be severely damaged for years after the foreclosure. Doing neither and just saving the money to move on with their lives, putting all of their mortgages and debt behind them is another option, although rarely recommended for homeowners who have any intention on applying for new credit after losing their homes.

For homeowners who do end up losing their homes to the foreclosure process, they can take control of the process of financial recovery. The negative payment history and foreclosure status of the loan will appear as a negative mark on their credit for 7-10 years, but it is mainly the first two years after they lose the home that are most difficult. During this time, they will only receive new credit with high interest rates, low balances, and high fees, and may be turned down for larger amounts necessary to purchase a new car, for example. However, homeowners can use this time to begin aggressively working on their credit record, by paying off older debts, going through a credit repair program, and establishing a new on-time payment history. The further in time they get from the foreclosure, the less it will affect their scores and, combined with paid off loans and current accounts, they may be able to qualify for a mortgage within a couple years after facing foreclosure.

Also, the possibility of the homeowners being sued after foreclosure is frequently so remote as to be not worth worrying about. Lenders understand that homeowners face foreclosure due to a lack of funds, so it is not in the bank's interest to sue these foreclosure victims after they have just lost their homes. This does not mean the mortgage company is compassionate, but that it does not see the profit in spending time and money to pursue another lawsuit after the foreclosure and obtaining a deficiency judgment that it will be nearly impossible to collect on. It is also not good business practice for the lender, who does not want to be known as the only bank that aggressively sues its former clients and paying customers due to a financial hardship, just because they can. So homeowners who have lost their homes have little to worry about from the lender in terms of being sued a second time.

There are many concerns that homeowners should have when facing the possible loss of their homes due to foreclosure. Considerations need to made, such as how best to stop the process, who to trust for foreclosure help, and how much time they have to work out a solution. Homeowners, though, also worry to a large extent about aspects of the foreclosure process that they have some control over, such as how long it will take the bank to foreclose on them after missing the first payment, what effect missing mortgage payments will have on their credit, and the possibility of being sued for a deficiency judgment after foreclosure. However, these concerns can be turned into advantages and opportunities by foreclosure victims, who understand how the process works and what the real dangers are to being in foreclosure, instead of worrying about consequences they believe are out of their control but that they influence greatly. This is why homeowners need to seek out foreclosure advice on their own and understand as much as possible, so they do not feel as if the situation is beyond their power to control and they feel left in the dark to lose their homes.

When homeowners are in the midst of a financial crisis and have begun falling behind on their payments, many of them feel like crawling into a hole and hiding from their creditors. They ignore the multiple phone calls every day and they will set aside mail from their mortgage company, thinking the letters to hold nothing but threatening information and demanding money the homeowners do not currently have. Even after the lender hires attorneys to sue the family, they will often avoid having any correspondence with the bank or its legal counsel. By ignoring such letters, homeowners will remain in the dark about where their property is in the foreclosure process, and may miss an important opportunity to stop foreclosure before the situation progresses further.

Most often, when a lender is suing to sell a property through the foreclosure process to have their defaulted loan paid back, a formal hearing must be held at the county courthouse. The lender's attorneys and the court system itself will typically send the homeowners information regarding what this hearing is for and when it will be held. Unfortunately, this hearing will be held in the early stages of the foreclosure process, and the likelihood is small that the homeowners have recovered from their financial hardship so quickly. Thus, the letter with the vital information may be thrown away or set aside until it is opened long after the hearing has been held, or the foreclosure victims will simply not attend the hearing, believing that nothing good will come of it and that they will be pushed into foreclosure right then and there. They may also fear being exposed as and reprimanded for missing numerous payments on their home.

However, the only way that the homeowners will automatically lose the lawsuit is if they do not show up at all for the hearing. The lender is awarded a default judgment against the homeowners, and the foreclosure process will proceed with no input by the actual owners of the property. They are given a chance to defend their position, or try and work out an arrangement with the lender and its attorneys, but, by ignoring the hearing completely, they are presumed to have given up these basic rights and opportunities, and the court enters judgment against them. At this point, the foreclosure process will begin to accelerate, with the attorneys attempting to set up the sheriff sale date as quickly as the law allows, and the bank will begin adding more fees, interest, and charges to the loan, making it more difficult by the day for homeowners to figure out a solution to avoid the foreclosure.

Especially in cases where the foreclosure victims suspect some sort of foul play or incompetence on the part of the mortgage company, it is extremely important not to miss this initial foreclosure court date. It is not uncommon for banks to misplace payments, report the mortgage as late, and refuse to accept any other payments, which leads the homeowners to foreclosure. The homeowners may futilely try to prove they made the payment, and have convincing evidence, such as canceled checks or online payment confirmation. But, if they do not provide such evidence to a court at the foreclosure hearing, a judgment will be entered against them regardless. As the size of the lender and the complexity of their mortgage operations increase, the possibility of homeowners facing foreclosure due to deception or incompetence rises.

Whenever homeowners find themselves facing a financial crisis and are unable to pay their mortgage, they should seek legal advice from a competent attorney. This advice should include the possibility of filing bankruptcy to stop foreclosure, although this may be held as a last ditch effort, rather than the immediate step taken. It is, though, more than a bit ironic that homeowners facing a loss of income or sudden extra expenses need the services of an attorney at exactly the moment when they are least able to afford legal advice. However, homeowners being sued for foreclosure are at a distinct disadvantage when dealing with the mortgage company and their seasoned local attorneys, who have worked with the court system for years and know exactly how the foreclosure process in that state works. Many foreclosure victims find it difficult, if not impossible, to get any information from the bank's attorneys, which makes it even more important for them to have a solid understanding of how the process will work and how it can be stopped.

It is never a good idea for homeowners to avoid any of the correspondence from their lender or the attorneys handling the foreclosure. Although most of the mail will be strictly collections efforts, the foreclosure victims should make every effort possible to find out when is their day in court. Otherwise, they have no defense against the legal process and will not even be given a chance to relate their side of the story, their reasons for missing the mortgage payment, and what they have done and can do in the future to get the loan out of default and back back on track. A sympathetic judge can attempt to broker an agreement between the mortgage company and the homeowners, and give the two parties at least one final chance to work out a solution before entering the lengthy, expensive foreclosure process. Homeowners who are too busy avoiding this opportunity, though, may find out it has slipped through their fingers before they even knew they had it.

There has been a lot of interesting discussion recently of the possibility of the economy being in a recession currently, or soon sliding into one. The causes are primarily seen as a drying up of credit and the toxicity of subprime loans floating throughout the market. Combined with a weakening dollar pushing up the cost of many goods, imported and exported, along with large increases in the price of oil and gold, homeowners are going into a winter season with nothing but the expectation of rising expenses, through a resetting mortgage, higher transportation costs, and higher home heating bills. Such arguing and discussing of these larger issues misses the fact that many homeowners are facing foreclosure for the same reasons as they always have, but they now have no spare resources to use to save their homes. This does not mean they will lose their homes to foreclosure, but they will need to trust more in their own abilities than in any other source of help.

The most common reason for homeowners to fall into foreclosure that we have been exposed to for years is a sudden job loss or loss of relied-upon income. A factory may be shipped overseas, or overtime dries up as the economy has slowed down. In either case, homeowners who have been relying on leveraging their current incomes to finance even more extravagant lives of consumption soon find that their lack of savings and huge debt burdens were held up with nothing but a hope and a prayer that their current fortunes would continue. Unfortunately, this is rarely the case, and homeowners need to save as much as reasonable for a rainy day. Life is always unexpected, but when families place all of their trust in their jobs providing a stable enough income to keep on top of their mortgage and credit cards, instead of trusting in their own financial stability, foreclosure or bankruptcy may be the likely results if that income flow is disrupted.

The second most common experience that pushes homeowners over the edge and puts them in danger of losing their homes is a sudden medical expense, disability, or illness. With hospitals now charging all patients the maximum allowed by law, knowing the government will pick up the tab in many cases, and with insurance companies doing everything possible to avoid paying out claims, which would cut into their profits, even a moderately-serious medical problem can quickly balloon into thousands of dollars of expenses, lawsuits, judgments, and wage garnishments. The homeowners, already struggling to make their payments before the illness or accident, now must contend with finding some way to pay these extra expenses as soon as they are back on the job.

The real danger comes when a sudden medical expense leads to an inability to work, or when a sudden job loss begins a spiral of shame and depression, ending in the need for medical attention, due to a weakened immune system or a drop in the quality of the family's nutrition and ability to feed themselves with lower income. These possibilities have occurred countless times with homeowners that we have talked to, who are just now coming off of their own personal "bottom" and wish to save their homes and put their lives back together. In many cases, it may just be too late to find some option to stop foreclosure, excluding a bankruptcy to prevent foreclosure or giving the bank a deed in lieu of foreclosure. Homeowners who are now ready to take on their banks and fight to avoid being homeless can often end up keeping their homes and beginning to repair their credit and stabilize their finances.

It is the homeowners who overcome their financial hardships that provide true portraits of hope and inspiration. Foreclosure victims who have survived their own personal catastrophe could be excused for giving up on the homes and simply moving on with their lives. Many of them take this exact route, leaving their properties to foreclosure, vandalism, or worse, while they move into an apartment and seek out new jobs or wait for social security to assist them.

For the foreclosure that have contacted us throughout the years and done everything possible to save their homes and have overcome every hurdle the bank or their attorneys have sent their way, their experiences should provide a measure of hope to every other family facing the loss of their homes but who are willing to do whatever possible to avoid foreclosure. Finding a realistic, affordable method to stop foreclosure once the process has begun is never easy, and going through with the method more difficult still. Countless homeowners have saved their homes despite these problems and others, and countless more will continue to do so, if they are simply willing to face reality and begin taking the necessary steps to learning how foreclosure works and how it should be stopped in their situation.

Today is the 300th entry on this blog in just over one year of existence. It is not easy coming up with fresh topics to write about, but the relevant articles and entries here are all designed to help homeowners find the most efficient ways to stop foreclosure on their homes and begin recovering for it afterwards. In honor of the day, we are including links to previous entries that we and our readers have felt are some of the most important statements we have made about the foreclosure process over the past year. Some of our favorite, most read articles are listed below:

Foreclosure Tip of the Day - Don't go into foreclosure again

Mortgage Brokers who String You Along Until It's Too Late

Fewer Foreclosures by Private Equity Investing

How Money Is Used

Foreclosure Refinance -- Easy or Hard?

Eleven Ways to Stop Foreclosure

Find Out When Your Sheriff Sale Is

Buy a Home After Foreclosure

Killing Hope at the Last Minute

Stop the Sheriff Sale, Stop Foreclosure

Renting an Apartment After Foreclosure

Rely on One Option to Stop Foreclosure and Lose Your Home

Foreclosure Time Frames -- How Long does the Process Take?

Find Out if Your Home is Even Worth Saving

Obviously, the drawbacks of losing a home to foreclosure are much greater and more numerous than any benefits. However, homeowners may experience some positive aspects of facing foreclosure. A financial crisis which leads to the possible loss of one's property provides a number of opportunities for the foreclosure victims to learn important lessons about their current financial conditions and the future of their families' lives. Attempting to survive a foreclosure situation without being aware of these more positive aspects is overlooking the real lessons to be learned, even when homeowners are unable to find a way to stop foreclosure and keep their homes.

First of all, homeowners in foreclosure can begin saving money, whether they are able to get their mortgage back on track or not. They will, of course, not be making the mortgage payments any longer. In the midst of a financial hardship, it is questionable how much of the homeowners' monthly income is freed up by not sending in the mortgage payment, but usually this payment can take up to 55% of their income before taxes. If homeowners need that money to begin recovering from the crisis, and there is no possible way to pay the mortgage on time, then it is better to start saving as much of their income as possible and recover from the financial hardship. Borrowing more money from credit card or payday loans to make the payment will only increase the burden later on.

With the mortgage payment freed up, homeowners should begin saving as much as they can for two reasons. First, this money can be used to begin a repayment plan with the lender to get the mortgage current again. Once the homeowners are behind by several months, the bank will not accept the regular payment. They will require a significant portion of the arrears in order to work out any arrangement. The second reason to begin saving money is in the event the homeowners are unable to stop foreclosure. This new savings account will allow them to pay for the moving costs and the expenses in renting an apartment after foreclosure.

A further benefit of the foreclosure situation is the financial binds it places on the homeowners' ability to borrow money. With the devastating credit ramifications of foreclosure, it will be nearly impossible for homeowners to get a new credit card, car loan, or mortgage at a decent interest rate. This will force them to begin living within their means, not borrowing money to finance purchases of extravagant, unnecessary items. Homeowners will need to learn how to become more self-reliant, as opposed to credit-reliant. Distancing themselves from the lure of credit, while reestablishing an on-time credit history with low balance credit cards will allow homeowners to prevent falling into the credit trap when it is next offered.

Homeowners who have recently faced foreclosure and were unable to save their homes will also not have to worry about all of the responsibilities of home ownership. By renting a new place to live, the landlord will be responsible for major repairs or maintenance of the property. Often, it is a furnace that needs replacing or a roof that begins to lean that leads to the financial constraints that lead to foreclosure. By eliminating some of these potential pitfalls, homeowners can focus on their own savings plan and raising their families to a more stable financial condition.

Finally, losing a home to foreclosure is not the end of the world. In fact, deciding to sell the house or through a short sale, or giving it up through a deed in lieu of foreclosure and then moving out can open up new worlds to homeowners. A new neighborhood and a fresh start can and should be somewhat liberating to the previous foreclosure victims. The most stressful situation of their lives has now passed, and they can focus on building a stable, sustainable future. This possibility would not have prevented itself if the homeowners had continued struggling to make payments in the old house, living paycheck to paycheck and worrying about the next illness or layoff.

Thus, there are a number of benefits of foreclosure, and reasons to feel good about oneself, even if the home has been lost. While it is the objective of most homeowners to avoid foreclosure and get back on track with their mortgage, this does not always happen. And in the cases where foreclosure is unpreventable, homeowners need to begin looking for the silver lining and realize some of the new opportunities they will be able to take advantage of, now that the foreclosure is over. While foreclosure is always a negative situation almost by definition, the foreclosure victims' reactions to it can provide them with new hope and a positive course for their futures.

Homeowners in a financial financial hardship almost never want to give their homes voluntarily. Most of them will do anything they possible can to stop foreclosure, even trusting in companies and investors that will only take advantage of them in such desperate situations. But although homeowners know that they do not want to be forced to move out and give up their properties, few of them really understand the long term effects of foreclosure. They know some of the more common effects, and, yes, being foreclosed will hurt their credit, especially if they have a lot of late mortgage payments on top of the foreclosure. But damaged credit is just one of the reasons to avoid foreclosure and find some solution before the lender takes the home through the entire process.

The lender and their attorneys will call several times a day asking for their money. This can be one of the most stressful aspects of the entire foreclosure process, especially when the homeowners are still in the middle of a financial crisis. They know they can not pay the mortgage, but are afraid to inform the lender of that fact for fear of being put into foreclosure sooner rather than later. The fact that the lender's collection department calls repeatedly at home phones, cell phones, and even workplaces generates even more stress that causes homeowners to avoid confronting the problem.

The foreclosure and sheriff sale will be listed in the newspaper and at the county courthouse, making everyone who is interested aware of the fact that this particular house is being foreclosed due to nonpayment. Often times, homeowners hear from their friends, family, or neighbors that the house is advertised in the paper, and this is their first knowledge of the foreclosure process at all if they have not been opening mail from the bank or their attorneys. Finding out from someone in the community that the house is in foreclosure is one of the most embarrassing situations to be in, on top of not paying the mortgage in the first place.

The house will sell at sheriff sale for much less than what is owed on the house, putting the homeowners in danger of being sued afterwards for any deficiency judgment (although this is rare). This is not allowed by every state and banks rarely pursue it, but it is an aspect of the foreclosure process that every homeowner should be aware of and watch out for, just in case. Although it will most likely not become an issue, banks facing serious losses due to the collapse of the subprime industry may turn to suing their former homeowners for as much money as possible. Thankfully, this has not yet happened.

The foreclosure victims will also lose the house and have to move out before they are evicted by the county sheriffs department. With a foreclosure on their credit, they will have a tough time passing the credit check to rent an apartment, and may have to put down more for a security deposit or pay months in advance. There are ways to get around this, but most former homeowners will find difficulties in finding another place to rent right after the foreclosure has been finalized and for several months thereafter.

The foreclosure victims will not be able to buy a new home for at least a few years after losing their property, unless they save up a large down payment, in the range of about 35% of the value of the the home they wish to purchase. Obviously, this is improbable for most families struggling to keep on top of all of their other bills, but it is in the interest of every family to have an adequate savings account in case of emergency. Funds from the emergency account can eventually be transferred to a new account to save up for a down payment or pay down other bills, as the former homeowners' financial situation stabilizes and improves. But for the first few years after foreclosure, there will be no chance of qualifying for a new mortgage without a very large down payment.

If they want to reestablish their credit, new loans and credit cards will have much higher interest rates and much lower maximum balances. Many companies will simply refuse to make any loans to the former homeowners, and the companies that specialize in poor credit lending often charge extra fees on top of high interest rates. It is important for foreclosure victims to begin reestablishing good credit habits after losing their homes, though, especially if they wish to become homeowners again in the future. If being foreclosed and evicted has not taught them the benefits of using credit wisely and sparsely, nothing will.

Those are some of the main repercussions homeowners will have to deal with when facing foreclosure, and none of them are really a lot of fun at all. In fact, most of them are quite stressful and will continue to plague the homeowners for years after the original foreclosure. If homeowners can find some way to stop foreclosure besides doing nothing, then they can potentially avoid some, if not all, of these unpleasant aspects of losing a home. Giving up on the house will not prevent any of these stresses of the process, but by fighting back against foreclosure, homeowners can take back control of their financial lives and keep their personal wealth and assets where they belong: in their own families and communities.

Although the topic of deficiency judgments has been discussed several times on this blog already, it is one of the most commonly asked questions that homeowners have regarding losing their homes to foreclosure. One reason for this, of course, is the fact that home values have decreased nationwide, and foreclosure victims know that their properties will not sell at the county sheriff sale for an amount that will pay off the loan in full. Therefore, they are worried about having to pay the difference to the mortgage company, and the possibility of the lender suing them after foreclosure and going after their other assets. However, in nearly all cases, there is no danger of former homeowners being sued for a deficiency judgment after they have lost their homes to foreclosure.

To understand how the deficiency is created in the first place, it is necessary to know how the foreclosure auction works and what happens to all of the liens affecting the property. When the sheriff sale of the house is conducted by the county sheriff, the sale proceeds are used to pay off any liens on the title. Most of the time, it is the first mortgage company that purchases the property at the auction, and they bid the minimum amount required by law to take ownership. In effect, they are using their own money to buy the home at auction to pay off their loan to the homeowners. But they do not pay off the entire amount of the loan unless necessary, which will created a difference between what is owed on the house and what is actually sells for at auction. Just because the proceeds do not pay off the entire amount of the mortgage, however, does not mean the former homeowners are automatically responsible for coming up with that difference.

To be responsible for the difference at all, the state foreclosure laws will have to allow the bank to sue the foreclosure victims for a deficiency judgment. Not all states allow this in all cases, so homeowners need to do some research under what conditions a lender in their state can sue after the foreclosure. If the state does not allow for deficiency judgments, then there is no danger at all of being responsible for the difference, and no reason to worry about having the car repossessed or having wages garnished.

Even if they are allowed to sue the homeowners, though, banks rarely go after a deficiency judgment. Just as the foreclosure victims are worried about how they would ever pay tens of thousands of dollars in judgments, the mortgage company is worried about how they would ever be able to collect it and how long the process would take. Foreclosure victims usually go into foreclosure because they lost income, so getting another judgment against them will not help the bank recover any lost profits. In fact, pursuing a deficiency judgment after foreclosure will often prove to be an exercise in futility for both the mortgage company and the homeowners.

Ever further, it will cost the bank more time and money to hire local attorneys to sue their former clients, and then try and collect on the judgment. All of these legal and collections-related expenses are resources expended before the bank can collect even one penny of the debt. Combine this with the fact that they know the homeowners had some financial hardship that caused them to miss their mortgage payments for a number of months, and there is little reason for the bank to believe that the former homeowners will be able to pay the judgment in any time frame that would make it worth it to them. The money that would be used to pursue the deficiency judgment could more effectively be put towards new loans or investments.

So, homeowners almost never need worry about being sued by their bank after the foreclosure, even if the foreclosure laws allow it. The bank could theoretically try to make them pay the balance after the foreclosure auction, but lenders almost never do this. Unless the homeowners were extremely wealthy and owned numerous other liquid assets, the bank will simply move on and allow the foreclosure victims to move on with their lives, as well. This is often the best resolution to the foreclosure for all parties involved. What can happen in theory rarely happens in practice, in the case of deficiency judgments.

In another sign of the conquest of the instant lotto, game show millionaire mindset over the traditions of working hard and exercising caution in personal transactions, some homeowners watching their Adjustable Rate Mortgages (ARMs) double their payments have contemplated suing the banks. They mistakenly believe (and state and federal lawmakers concur) that these loans are predatory and that homeowners were tricked into them. Rather, most brokers and loan officers do their best to get the necessary disclosures into the hands of loan applicants, who summarily sign them without reading them and simply hope for the best. Although there is enough blame for the mortgage crisis to go around, homeowners need to take responsibility for their own decisions and focus on meaningful ways to understand what has happened to them, and how best they can stop foreclosure, instead of attempting to take on an enemy more powerful and influential than they believe.

Since homeowners with quickly resetting mortgages voluntarily entered into a contract between themselves and the lender, and all the terms of the agreement were spelled out before the deal was closed, there is very little basis for complaining about the terms of the contract after the fact. Homeowners who do not understand any term of the contract should refuse to sign it until it is explained to their satisfaction by the lender or a knowledgeable third-party or their attorney. Having blind faith in the lender's advertisements is not a reliable method for purchasing a home.

In fact, about the only thing homeowners could do would be to sue the company to force them to follow the terms of the contract explicitly. Of course, that would not be in their interest, and it is more likely the homeowners will be able to negotiate a lowered interest rate or other mortgage modification without the involvement of the court system. Suing the bank when a foreclosure is pending is useful in the event of a clear case of fraud, but can hinder the process of putting together an agreement with the mortgage company.

Unfortunately, this is what happens when homeowners enter into a bad contract with an institution that is significantly more powerful and influential in the economy than they are. A large number of homeowners have their mortgage with any of the large multinational banks, which wield vast power throughout the economies of the world. If any party to the mortgage will be bailed out by a central bank or the government, it will be the one with the most influence (the banks), not necessarily the one with the most to lose (the homeowners facing foreclosure).

Never doubt, though, that the lender will make their money from the loan whether it goes into foreclosure or not. In fact, they already have. The mortgage companies have investors buying these loans while the lender continue to collect the payments and their fee for servicing the loans. Lenders can also bundle numerous loans and sell them outright to the investment firms, who then use a servicing company to collect the payments for a fee. That way, the original lender and the mortgage servicing company make their money as soon as the loan is closed or soon after.

When homeowners go into foreclosure, the banks will count this as a loss, even though they actually lose very little. The money they loaned to begin with was nothing but them creating an account for the homeowners that showed how much they were due every month. Banks can lend out more money than they have on hand, thereby creating the money out of thin air. But they will use the foreclosure victims' hardship to justify their losses and drops in stock value. This will, of course, push them to request help from the government, even though they have made money already and it is the homeowners who face the most immediate danger.

Then, the mortgage companies and investment firms will ask for a bailout from the central banks to keep from facing a "liquidity crisis," which means the Fed will print brand new money, inflating the money supply and driving up prices of gas, food, and energy (and everything else). In fact, though, this is the Fed stealing money out of the homeowners' pockets and giving it to the lenders, even while the banks are still foreclosing on the properties. Banks are bailed out by stealing money from consumers, giving them no further reason to try and take back the properties from the foreclosure victims, and homeowners can not stop foreclosure because prices for basic necessities are rising. The banks, however, seeing that they have made money from originating the loans, collecting the monthly payments, and the bailout stolen from the homeowners, can now grab the final prize by continuing the foreclosure process and taking the house.

The best foreclosure victims can really do now is learn a few lessons the hard way, try and find some way to prevent the foreclosure from taking everything from them and leaving them in a much worse financial situation, and make sure that they are protected next time so that they enter into a contract that does not screw them over down the road. Hopefully, more of them can become aware of how the banks tricked them into giving up their money voluntarily and then involuntarily, and then stealing their homes from them.

With the recent cut in interest rates by the Federal Reserve, the value of the dollar has dropped further and prices for oil and precious metals (such as gold and silver) have risen. Although the Fed will claim there is "low" or "no" inflation, everyone who eats food or drives a car will soon experience how untrue this statement will be. Every consumer, especially homeowners already in danger of falling behind on their bills, really needs to begin to establish some sort of backup plan, in case the wheels do come off the roller coaster we call the economy. Most of those rising prices we will be noticing in the very near future are from the drop in the value of the US dollar, not really an increase in the price of oil or food.

Months ago, the Fed pumped several billion dollars of newly printed money into the market to revive the economy from the collapse of the subprime mortgage industry. This is pure counterfeiting of money and steals the purchasing power out of the pockets of citizens, while investors and large banks and hedge funds get to use the money first. That is why investors on Wall Street see increases in stock values and think this is a good sign for the economy, whereas common people see increases in the cost of everything they buy and realize they can not keep up with the increases for much longer. Many of them may be forced to consider bankruptcy or other options to prevent foreclosure.

Stock prices can rise 6 or 8 or 10% annually with newly printed money continually injected into the economy. The Fed fudges the actual inflation numbers, declares the inflation rate to be at 2% or nonexistent, and every investor believes he has made 4-8% profit over the rate of inflation. Of course, the Fed's core inflation rate does not take into consideration energy or food prices, which take up huge amounts of consumers' budgets, and which have risen much faster than 2%. Homeowners in Michigan are experiencing their own economic recession, while more affluent communities are not hit as hard.

Possibly the best thing for common people (like almost all of us) is to have some extra backups in case things get tough for a few months. That might mean investing in silver/gold, or having an extra month's food supply on hand, or having 3-6 months of income in an emergency fund. This is especially important as the US moves into the winter months, which brings along higher energy costs in the form of home heating bills. Even if nothing happens system-wide to shock the economy, this planning can really help every consumer get through a temporary hardship. Just as no one can accurately predict the future course of the economy, it is no easier for families to predict a financial crisis, such as a sudden medical expense.

Another good reason to have this kind of backup plan is if there is some sort of natural disaster (Katrina style hurricane, San Diego style wildfires, etc.). Does any homeowner really want to have to make his way to the nearest large stadium for FEMA-administered starvation and disease, with all of the loss of civil liberties and freedom this entails? Or would the family rather be able to survive on their own even for just a few weeks until the crisis has passed and they can start working on rebuilding and recovering? Especially with all of the foreclosures that happened in the region after Katrina and the hurricane season, it would be a good idea to have some sort of plan in case things go very wrong.

But becoming more and more self-reliant will help every homeowner to ignore what the Fed and the markets say and do. We can not control them, and it would be a mistake to try to do so. All homeowners can work on is their own family's financial situation and what their plan will be if something happens. Simply planning for the possibility of foreclosure can mean that it never becomes an issue to begin with. Likewise, not planning for such a financial crisis almost guarantees that any setback can push the homeowners straight into missing bill payments, considering filing bankruptcy, or facing the danger of losing their homes due to an entirely avoidable foreclosure.

One tendency of homeowners in foreclosure is to hope for a solution to their problems to come from the government, whether in the form of a free bailout, social housing, or some unidentified method that they can use to fight the foreclosure. While the state foreclosure laws are designed to protect the property rights of foreclosure victims, there are very few official resources in place to educate homeowners on basic financial concepts. Local authorities, furthermore, are merely given orders to carry out by the court system and offer virtually no opportunities for homeowners to explore options to stop foreclosure.

There are not really any social housing or government assistance programs for foreclosure victims, especially at the federal level. There may, however, be resources at local levels, especially if a group of concerned citizens organize together to keep their wealth in their neighborhood, rather than watching the value of their property decline as large banks become owners of vast portions of the city or county. For the most part, though, homeowners are pretty much left to their own devices from start to finish during the foreclosure process. This is probably one reason why many of them end up losing their homes, even when they have other options. They simply do not come across an explanation of how foreclosure can be stopped and what methods may be available to them.

The local authorities, such as the county court system, sheriffs department, or city officials, certainly have no responsibility to find alternate housing for the evicted families or otherwise help them, especially if the community has not put any safety nets in place. The county sheriff conducts the foreclosure auction and also carries out the eviction at the orders of the court, once the homeowners have lost the home and have been ordered out. That is the extent of the local authorities' participation in the process. The law may provide the homeowners with time and options, but foreclosure will proceed to its inevitable end if no option to avoid foreclosure is found and implemented.

Most of the foreclosure victims who move out after losing their homes to foreclosure, though, simply go and rent an apartment or a new house. There is really not much else they can do, as the likelihood of them qualifying right after foreclosure for another loan to purchase a house is almost nonexistent. Others, of course, go and live with other family or friends until they have gotten their finances back on track. The period after the foreclosure has ended is often one of either an intense feeling of unfairness and bitterness toward the foreclosing bank, or a time of reflection to figure out what went wrong in the former homeowners' financial plans to cause them to lose their homes.

An unfortunate few will end up with no other options and will be facing some tough times being homeless for a period. Hopefully, this number will never be very large, but it is one of the sadder realities of anyone facing foreclosure. The very real possibility of this happening should be enough to convince other homeowners that they need to have a financial plan that allows for the eventual emergency. Without an emergency fund that will last them 3-6 months until the hardship has ended, prosperity can very quickly be transformed into desperation. When homeowners have self-insured their incomes for a few months, though, there is less of a need for desperate measures to be considered, as their savings will carry them through the worst of the crisis.

But homeowners in America, in general, are pretty much left on their own before, during, and after foreclosure. There is very little financial education given to the average consumer who lives on credit cards and finances their way through life, vainly attempting to keep up with their neighbors, who are just as poor and over leveraged as they are. This lack of education is one of the main reasons for the fact that so many homeowners do not know how to prevent going into foreclosure, and can not find a solution once they are in danger of losing their homes. But, financial education is easy to come by online, so every homeowner can research various ways to save a home. Gaining knowledge about how foreclosure works and what is often done to stop foreclosure can allow homeowners to use effectively the time and protections they are given under the state foreclosure laws.