The Key to Facing Foreclosure is Facing It
If you need foreclosure help, this can be terrifying. However, there are some tips to facing the problem and achieving the best possible realistic results you can achieve in this situation.
Your current situation probably didn't come as a surprise to you because foreclosure proceedings aren't begun after a single missed payment. Much like other financial situations, however, the discomfort of facing certain realities can create enough stress so that you avoided considering action until some later point in time. 
The earlier you consider that your property may be subject to foreclosure, the more you can do to prevent and cope with it and avoid making panicked and often less-wise decisions. The concept of strategic default is often one of those less-wise decisions. While some of the reasons for deliberately stopping mortgage payments may seem reasonable, oftentimes the damage you cause to your credit and the hostility you will get from your lending institution means that your choice to stop paying your mortgage will have worse long-term results for you than if you try to pay your bills as long as possible.
One of the options available to homeowners, although not nearly as available as they are marketed to consumers, is loan modification. There have always been certain loan modifications that were available, many of them for certain periods of time, such as for six months, or during a specific crisis period, such as immediately following the death of a spouse. If your financial difficulties are arising because you suddenly find yourself unemployed or disabled in some way, you can absolutely speak to your lender about loan modification. However, loan modification is not usually available simply as a means of getting a better deal because interest rates are lower and avoiding refinancing and its associated costs. In this case, you would probably have to refinance your loan.
Your rights during foreclosure do exist and often take the form of buying you time. You are entitled to notice and reasonable time for all activities associated with the foreclosure. Investigate the specific provisions in your area regarding the options you have once foreclosure proceedings have begun.
Short sales are a commonly invoked possibility that if you sell your home for less than you owe on your home, you'll be able to negotiate with the bank to accept this lower amount. Short sales are not a slam dunk and vary by region and lender. If you believe you can obtain a certain price for your home and that you will be unable to come up with the balance of what is owed, speak to your lender beforehand about the possibility of a short sale. Ask about what that would entail in terms of the minimum amount they would accept, how long their decisions usually take regarding the acceptability of a short sale and what forms of paperwork will be involved in the short sale.
Bankruptcy remains an option for homeowners facing foreclosure. Again, the helpfulness of this solution will often depend on specific laws in your region including any provisions, such as homestead provisions that allow for the exemption of primary residences from bankruptcy. However, 
if you're facing foreclosure because you haven't paid your mortgage, this solution will fail unless your other payments that might be discharged in bankruptcy are the reason you stopped being able to pay your mortgage. An important consideration to make is both the short-term and long-term consequences of bankruptcy.
If you're facing foreclosure, consider finding a place to rent before the foreclosure goes through. Many rentals require a background check, including your credit, before renting to you. More practically, you need a place to go after foreclosure. If you need to rent a storage unit, do so. In the event your credit has already been damaged, you might want to avoid application fees for choosing apartments and proceed to look for a direct rental by a landlord.
Foreclosure avoidance and assistance usually come in the forms described and discussed above. Before jumping into a paid service that provides you additional assistance, do your research and find out exactly what such an outfit is offering and how much they are charging for this service.
Foreclosure is devastating to your finances and peace of mind but if possible, try to maintain a focus on what is right in your life as you face this crisis. You may have successful relationships. You may still be healthy, among other good things in your life. Don't panic, but proceed with the foreclosure as what it is, which is enormous enough without turning it into an end of the world story. Essentially, it is a crummy business decision you made that is now kicking your butt financially.
Facing the likelihood of foreclosure can be a complicated and stressful time. By using the above tips, you will be able to consider realistic options and focus on your future.
