A loan to stop foreclosure is a loan, either entirely new or simply modified, that is taken to stop foreclosure. When this loan is taken, it cancels out the original loan, thereby canceling the foreclosure for the time being also. As mentioned earlier, the loan could technically be a new loan offered by another lender, but is more commonly one that is is modified, through loan modification. To begin loan modification, homeowners must request consideration through government HUD counseling agencies or by approaching their lender directly. If approved, the homeowner will be fitted with a loan that may include a change of interest rates, an extended term, or a forgiven principal. However, no program guarantees that a homeowner will be qualified for modification. If not approved, other alternatives to foreclosure exist, but homeowners need to be wary of companies that may claim to offer loans, only to take possession of the deed against the homeowners requests. Before taking any loan, especially one that claims to stop foreclosure, it can prove essential for the homeowner to consult with a lawyer to make sure you have not been targeted by a scam.