No one likes a foreclosure, whether it is you – the owner of the house, or the mortgage lender. Stopping a home foreclosure auction starts right from the time you receive the notice of default from your mortgage lender. It may sound odd, but the main reason why people are not able to stop foreclosure of their home is because they respond late to the notice of foreclosure, or not respond at all! You have less than 120 days from the time you receive your notice of default, and the foreclosure auction of your home. 

Most people believe in the myth that the notice of default is the end of everything, and that they are going to lose their home to foreclosure. Nothing could be further from the truth. You have many ways and options to stop foreclosure of your home and its impending auction. You can actually start to avoid foreclosure even before you miss your first mortgage payment. It is true that as the date of foreclosure auction nears, your options to stop foreclosure reduce, until you have nothing to look forward to but bankruptcy. 

Ways To Stop Foreclosure Auction
You need not give up hope to stop foreclosure auction of your home, without exploring all the available options. Avoid the main mistake most make. Refuse to go into your cocoon, and immediately seek an appointment with your mortgage lender. It is through the mortgage lender that you will be able to come out of the financial mess, and avoid foreclosure auction of your home. 

You can negotiate with your mortgage lender outside the terms of the original agreement, and he/she will be as keen to avoid foreclosure auction as you are. After all, the mortgage lender is there to make money out of your interest payments, and not the auction of your home. 

Here are some of the ways you can workout with your mortgage lender to avoid foreclosure auction:

• Mortgage Modification – Your mortgage lender may agree to change the terms of the agreement. Such modifications to the mortgage terms are temporary, till such time you are able to catch up with the past due amounts. Your mortgage lender may agree to add the past due amount to your existing mortgage, to be repaid over long term. Alternately, the lender may agree to lower the payment amount, as you are unable to make the payment at the previous level. This is done by modifying the length of the payment term. Modifications are done by reducing the rate of interest, or extending the amortization of the loan, to reduce the payment obligations. 

• Changing Re-Payment Plan – Many mortgage lenders would be happy to work out a new repayment plan, as you are unable to stick to the original plan. They would be willing to make substantial concessions to help stop foreclosure auction of your home. One repayment plan could be to let you catch up by adding a part of the missed payments to the current payment for a few months till your account becomes current.

• Deed In Lieu Of Foreclosure – This happens when the lender ‘allows’ you to return the property back to the mortgage company, and forgives the debt. You can exercise this option once you have failed in selling your home over a specific period of time to stop foreclosure auction. This is only possible if you meet certain qualifications: when in default, you should not qualify for any other options; you should have failed to sell your home before foreclosure; and you have no other liens against your home

There are other options you can try - independent of the mortgage lenders - to avoid foreclosure auction of your home. 

• Selling Your Home – This is an option available to try to avoid foreclosure auction of your home. A competent realtor helps you in putting your home on the market. You may have to lower the asking price to attract more and more buyers, as time is of the essence. With time running short, you may also be running out of options. Despite the urgency to sell, investigate the prospective buyer, as you would normally do, circumstances being different. Check the background of your potential buyer with your state’s Attorney General, the Real Estate Commission, or the local District Attorney's Consumer Fraud Unit. 

• Seeking Family’s Help – This could be one option that may be the easiest, and difficult at the same time. You need to overcome the discomfort of discussing your financial problems with your loved ones. They would love to forward a loan to you to help you stop foreclosure auction of your home.

Of the given options to stop home foreclosure option, select the one that suits your needs and requirements.

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