Through various methods, homeowners who are in danger of being foreclosed on can take steps to help avoid foreclosure, beginning with preventative actions before foreclosure begins. Almost always, foreclosure occurs as the eventual result of financial hardship, which most likely was unforeseen. So in most cases, foreclosure cannot by stopped per se until the hardship has occurred, at which point some homeowners assume its too late. However, the time that transpires between the occurrence of the hardship, the first nonpayment, and the notice of default is time enough to begin avoiding foreclosure. This can be accomplished by - keeping a months extra payment on hand, reading letters from your lender in advance, contacting the lender as soon as you have trouble, and lastly, by refinancing loans when you can take advantage of low interest rates.

After the fact, there are a few common methods that help to avoid foreclosure. First, the lender should negotiate with their bank or lender. A successful negotiation can end in one of several beneficial methods that avoid foreclosure, including a loan modification, short sale, or repayment plan. In cases where the lender cannot be of help, the other primary source of help should be The Office for Housing and Urban Development (HUD). HUD, which has housing counseling agencies nationwide, can connect homeowners with resolution through federal programs in addition to being a tremendous advice regarding other methods.