With the economy being in turmoil, the number of people having problems with their mortgage is on the rise. The thought of foreclosure is at the top of the list of homeowners' worries. However there are ways to avoid foreclosure on your house.

Do not ignore the problem
If you know you are having trouble making your payment and/or are receiving letters from your lender you must confront the issue. The further behind you become on your payments the more difficult it will be to modify your loan, so act fast.

Contact your lender
Did you know it costs the bank $50,000 out of pocket to handle the average foreclosure? The lender does not want your house! They will often be willing to do a loan modification in order to ensure that you are able to stay in your home. Be sure to keep in contact with your lender. Refusing to open your mail will not be excused in court. Check this list of mortgage company phone numbers and call your bank for more information.

Know your rights
Be sure to re-read your loan documents and make sure to educate yourself on foreclosure laws in your state as every state has their own variation on these laws.

Contact a housing counselor
Try to find a HUD approved counselor. Often a HUD counselor will offer their service for free or at a very low cost. Additionally there are several businesses that can help you with your loan. You must beware of scams; there are plenty of businesses that claim to have the ability to get rid of your debt and mortgage burdens. Read everything carefully and understand that you should never sign anything you do not understand. Find a HUD Agency

Cut back on any excessive spending
Create a list of priorities such as health care and your mortgage, and take a look at assets you have. For instance, you may want to give up your second car or sell off your life insurance policy. It is important to let your lender know that you are making an effort to pay your mortgage. The most important step to avoiding foreclosure is to explore all of your options. Only by confronting the problem head on can you tackle the issue. Don't let yourself become a statistic. Take the steps necessary to avoid foreclosure today.

What is a Non-Judicial Foreclosure?
The non-judicial foreclosure process is used when a deed of trust contains a power of sale, enabling the trustee to initiate the foreclosure process without having to go to court.

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Q. What is foreclosure?
A. When a borrower has been unable to make the scheduled payments on his or her mortgage loan for an extended length of time, the lender may feel that the loan has been defaulted, and will undertake legal proceedings in order to repossess the property. Any equity the homeowner may have built up in the home is lost, and the homeowner will have to vacate the premises. Laws on how long a homeowner has before a lender can start foreclosure proceedings vary form state to state. Foreclosure Laws for All 50 States

Q. What is loss mitigation?
A. Loss mitigation is a set of programs/solutions that consists of a variety of procedures set up by the government and lenders to assist homeowners threatened by foreclosure. The goal of loss mitigation is to help the homeowner to stay in their home, and protect their credit history.

Q. How can National Housing Group help me stop foreclosure?
A. We go to great lengths to make sure we are thorough when completing your financial documentation with you in order to be certain you comply with the institutions stringent approval process. We have the experience and expertise to predetermine and prepare for any pitfalls that may occur when dealing in negotiations with banks/servicers.

Q. I just received a notice of foreclosure. How long do I have to make my decision on what to do?
A. When it comes to dealing with late mortgage payments, time is not your friend. The sooner you act - the better. Your lender will be much more confident in your willingness to make payments on your mortgage if you deal with the situation immediately, rather than waiting until your back is against the wall. The home foreclosure process can take anywhere from a few weeks to many months, depending on your state law and the method of foreclosure your lender chooses to use, but it is imperative that you take action as quickly as possible.

Q. Can't I negotiate with my lender myself?
A. If you are only a payment or two behind, you can certainly discuss your difficulties with your lender yourself, and work out a suitable arrangement. However, if your lender is not cooperative, or puts you off for more than a couple of weeks, then it is the time to contact us. Don't wait for more than a couple of weeks, because, as it cannot be emphasized enough - time is not on your side in these matters. We provide the professional representation that you need to achieve the best workout agreement possible with your lender.

Q. How long is this going to take?
A. Working with your lender to reach a suitable arrangement can take anywhere from a few days to several months. It all depends on your current financial position, and whether or not foreclosure proceedings have already been started. Typically, it takes several weeks to complete a workout agreement and stop foreclosure proceedings.

Q. I'm currently in bankruptcy. Can you still help?
A. It is possible to help you. It all depends on your unique situation. We cannot, however, negotiate a workout agreement with your lender until your mortgage has been discharged or dismissed from the bankruptcy proceedings.

Q. I've already talked with my lender. They just want to get paid. Can you still help me?
A. Most of our clients have experienced this kind of inflexibility from their lenders before calling us. We get your bank to listen to your needs. Our integrity and professionalism have earned us a reputation that allows us to be heard when no one else can get through the red tape. We will use our experience and connections to your advantage .

Q. Should I file for bankruptcy to save my house?
A. This is usually not a good idea. According to the American Bar Association, 96% of homeowners who declare bankruptcy end up losing their home to foreclosure. Bankruptcy is very unlikely to help you save your home. There are certain times when bankruptcy is appropriate - we recommend you consult a reputable attorney in this regard.

Q. Do I need a special type of mortgage loan for you to help me?
A. No. We work with any type of mortgage loan, from FHA, Rural Administration, VA, Freddie Mac, Fannie Mae, to conventional loans.