Q: What does the term mortgage foreclosure mean?

A: According to Webster Dictionary, "foreclose v., closed, closing. -v.t. 1. a. to deprive (a mortgagor) (you) of the right to redeem a property, esp. after defaulting on mortgage payments. c. to subject (a property) to foreclosure. b. to takeaway the right to redeem (a mortgage). 2. toshut out; exclude. 3. to hinder or prevent; preclude; forbid. 4. to establish an exclusive claim to. 5. to close, settle, or answer beforehand. 6. to foreclose a mortgage. foreclosable".

In most states when you have missed three monthly payments you have defaulted on your loan, but you are not yet in foreclosure. The foreclosure proceedings will not initiate until the mortgage lender or bank submits claim papers to the appropriate civil authorities for legal action.

Q: What are my options to stop a foreclosure?

A: Once the lender has sent the proper notifications informing all parties of the mortgage default, it is imperative that you keep your wits and act fast. Seriously evaluate your financial situation, should you work out an alternative to the foreclosure do you really have the resources to stay in the home long term or is this a short term stop gap solution to the problem. If so, immediately start considering the options, new loan, refinance, renegotiate existing loan.

Q: Who do I contact for assistance?

Contact the mortgage lender concerning any options with payment adjustments, refinance, or negotiations on the existing loan. If it is impossible to keep the home, there are generally local investors which can assist and help you get started in your financial recovery. Do your research to assure you are dealing with a credible investor and of course never sign anything without reading it first. The Foreclosure Survival Handbook is a great resource for finding who to talk to and exactly what options you have to stop foreclosure proceedings.

Q: I am in foreclosure now. How much time do I have before I must leave my home?

A: Foreclosure laws vary widely from state to state. Some states don't advertise the auction for 130 days, while others will advertise the public sale only seven days after the foreclosure was filed. Either get online or go to the public library and look up the state legislature. You will find detailed statutes regarding the foreclosure regulations within the state where the proceedings are located. Do the state specific research so you are completely informed on what timeline the proceedings will follow, but above all else, act now, act wisely, and keep your spirits up. A cool calm well informed head is one of the best resources to possess at this time.

Q: Does the lender have the right to repossess my house, even though I have been paying for it all this time?

A: Unfortunately, yes. Even though you only missed those few payments and had paid so many others, the mortgage documents or deed of trust (depending if you live in a judicial or non-judicial state) gives the lender the right to foreclose and repossess the property after you have defaulted on payments for a certain length of time.

Q: What is refinancing and can it stop my foreclosure?

A: By refinancing, you are essentially taking out a new loan to pay off the current mortgage. Refinancing a home will normally entail some additional expenses such as, closing cost, a new property appraisal, pre paid taxes, etc. It is typical necessary to have some equity in the home to reduce the risk of defaulting again and is not for everyone. However, if a refinance will work in your situation it can often be very beneficial, as you may end up with a lower interest rate which results for lower monthly payments for you.

Should I lose my home to foreclosure, will I have less of a chance to purchase another home?

If you apply for a loan on another house your past foreclosure will show in your credit history. This does not mean you will not qualify for a loan; however you are less likely to receive, for instance, a low down payment loan. It is very important to stay informed and knowledgeable in how to stop the Foreclosure before it happens. There are people who are willing to take the time and help.

The Foreclosure Survival Handbook offers many options and information for stopping mortgage foreclosures, and if you must leave your home there is additional information and suggestions on how you can stop the foreclosure and save your credit rating and possibly several thousand dollars in the process.