First of all, we will look at avoid home foreclosures solutions that keep you in your home.

If your situation is temporary, you can ask the bank to do what is called a forbearance. This is where they reduce or suspend your mortgage payments for a short period of time (generally no more than 6 months) when you have extenuating circumstances. Generally, forbearances are granted when someone has been laid off and has a realistic chance of finding new work in the time period or when there has been a major medical situation.

If you got behind but can now catch up, you can make one lump sum payment and have your loan terms stay the same. This is called reinstatement.

If you can start making the monthly payments and also pay something towards the amount owed, you can do something called “redeem” the loan.

But, if you know you’re going to lose the house, you can still avoid home foreclosures by taking immediate action. For instance, can you sell the home either to a family or an investor? In these days of depressed home values, it may be difficult to get the amount you owe in the limited amount of time you have, so don’t dawdle on this point.

Selling your home to an investor through a short sale is another option. In this case, you and the investor work with the bank to lower the amount owed. The investor can then buy the home at the lower price. The bank recoups some of the money they’ve lent. And, you are able to be free of the house.

Something similar can happen in a two way deal between just you and the bank. This is called a Deed in Lieu of Foreclosure. What happens here is that the bank accepts the home for you and you walk away. The bank is typically agreeable to such a situation, even though it means a financial loss to them, because so many homes have been looted and destroyed by homeowners who are losing their homes. In a Deed in Lieu situation, you agree to leave the home intact with all of the appliances and piping in place.

In both a Deed in Lieu and a Short Sale situation, you will take a hit to your credit. Usually this is reflected in your credit score for about two years. A foreclosure, on the other hand, will pose far more serious challenges on your credit report and can affect your score for 5 to 7 years.

Also, you should get it in writing from the bank that when you use a Deed in Lieu or a Short Sale that the bank is waiving its right to collect a Deficiency Judgment. If you don’t do this, the bank can come back later and sue you for the difference between what the home was worth and the amount you owed.

If you have a situation where you can no longer afford your home, look at ways in which you can avoid home foreclosures.

First of all, you might want to start by talking to a foreclosure counselor. Now, when you want to avoid foreclosures, time is of the essence, so don’t put things off thinking you can call the counselor �tomorrow.� Do it today!

There are a number of different foreclosure avoidance counselors. Some of these charge you a fee � which can be quite hefty. But there are also foreclosure counselors who are paid through non-profit organizations or by the government.

Avoid foreclosures counseling services are provided for no cost by nonprofit housing counseling agencies which work in partnership with the Federal Government. These agencies are funded, in part, by the Department of Housing and Urban Development and by a non-profit organization called NeighborWorks� America.

But, at some point, you will also have to talk to the bank. Again, you should do this sooner rather than later.

If your mortgage problems are temporary, there are a number of solutions that your lender can help you with. For instance, to avoid foreclosures, they will often do a �forbearance� which is a reduced or suspended payment for a limited period in order to let you catch up.

If you have a deficiency, but need to catch up and have the money to do it in a lump sum payment, the lender will often reinstate your loan under the old terms

If your situation is long term, you also have some options. For instance, mortgage modifications can take many forms to help you avoid foreclosures. For instance, the bank can add the missed payments to the back side of the loan. They can change the interest rate including changing an adjustable to a fixed interest rate loan. They can also extend the number of years on your mortgage making your monthly payment lower.

Other options to look into when you are trying to avoid foreclosures include selling the house. If you have equity in or are even on your home, you might be able to sell the home directly, assuming you can find a family or investor who wants it.

If you are �upside down� on the house, consider solutions such as a sort sale or Deed in Lieu of Foreclosure. Both of these situations have you turning the house over to either an investor or the bank and walking away. While this will negatively affect your credit, it won’t be nearly as bad as having a foreclosure on your record. If you pursue one of these programs, make sure that you get in writing that the bank is accepting the deal as satisfaction in full for the debt so that they don’t hit you for a deficiency judgment later.

There are several ways to avoid foreclosures. But, the important thing is to get the information you need and then act on it right away.