4 Things To Try Before Foreclosure

Usually one has somewhat of an advance notice that they’re going to miss a mortgage payment, so before that happens and the bank comes to take your house away, Kiplinger’s advises calling up your lender and discussing one of these four options:

Refinance: Replace your mortgage with one with more favorable terms. A lower interest rate, extending the term, or switching from an adjustable to a fixed rate loan are common options.

Forbearance: A temporary reprieve from payments which you either make up later or tack on to the end of the loan

Loan Modification: Lender temporarily reduces the interest rate.

Short-Sale: Lender cancels your debt in return for the money from selling your home.

Kiplinger’s notes that lenders might not change your loan terms until you’re 30 or even 120 days late on your payments, for legal and tax reasons.

Also, certain states, like Massachusetts, also offer mortgage relief programs that lets owners request extra time to avoid foreclosure.

Having a foreclosure on your credit report gets filed under payment history, which accounts for 35% of your credit score. Plus, would you really want to put yourself in the same league as this jackhole? — BEN POPKEN

What to Do If Your Home Is on the Line [Kiplinger’s]
(Photo: Getty)


Edit Your Comment

  1. BillyMumphry says:

    Best way to avoid foreclosure:

    Don’t assume a mortgage you cannot (or barely) afford.

  2. Mortgage fraudster Casey Serin has fled the country:


  3. richdeluca says:

    If you are a homeowner in foreclosure be sure you understand the common scams people run on homeowners.

  4. mac-phisto says:

    too bad the ppl who are most at risk for foreclosure don’t usually have that refi option available to them.

    @BillyMumphry: despite the increase of foreclosures due to the implosion of the subprime market, a large number of foreclosures are still due to traditional reasons – job loss, medical conditions, divorce, etc.

  5. madktdisease says:

    ooh, you didn’t add “by all means, don’t bother taking a job” or “starting a blog” or “keep eating out all the time”.

    i feel truly awful for people taken advantage of by heartless people telling them they could have their dreams when they clearly weren’t making the money to. i just hate casey serin. he makes my generation look bad.

  6. anatak says:


    Right, I really expected there to be a 5th option. Something like, ” Start a blog, admit you were a lying asshat who thought that Carlton Sheets BS was real, do nothing…. do nothing…. still nothing, flee the country.” Seems to be working out for ol’ Casey.

  7. Sudonum says:

    I didn’t see the “burn down the house and collect the insurance” option up there. That would be right along the lines of intentionally dropping your laptop.