All options available to stop foreclosure depends on who you choose to work with. I have meet with many families and individuals facing foreclosure, and unfortunately many of them simply did not understand what they were starting into when they choose an investor to assist in solving their problem. I have met some who are happy with their results and some who are less than satisfied. It is not my intention within the scope of this article to vilify the investors who for whatever reason fell short in their clients opinion. Most investors did what they promised they would do. The homeowners simply did not fully understand what they were facing when their home went into foreclosure.

If there is enough equity in the home you can find a Realtor to sell the home for you. This is the best option if it is certain you cannot keep the home, just be sure there is enough equity to pay off the loan including any back payments or missed payments with late fees, and the selling agents commissions. It would be advisable to do some research in your local area and locate a Realtor who has experience in selling pre-foreclosure homes. There are excellent real estate agents who specialize in marketing homes that are in pre foreclosure or past that point. They are few and far between. Be sure to find one who has experience in and success with foreclosure situations.

There are all types of investors out there willing to help homeowners facing foreclosure, just be careful which one you choose. Most investors really want a winning foreclosure solution for all parties, but there are also those that are looking to make an easy buck at someone else's expense. Before signing anything, get some references or letters from pleased past clients that can be verified. Find out what strategy they will use to stop foreclosure and keep you in your home. Ask what do you have to do to commit to receive their assistance and what are the expenses for their services.

A gentleman I recently spoke with claimed that he just didn't realize that the agreement he signed required him to move out. He was very anxious to find a new place to live. He did save his credit history from having a foreclosure on it. This will enable him to purchase a home again soon. I wasn't there when this particular strategy was explained to him. I can't say whether it was made clear to him at that time that he would not be able to remain in the home. When considering the offer for help that will be extended, make sure that you have it all in writing. Make sure you understand what is being offered before you enter into any agreement.

Many homeowners facing foreclosure assume they have no options to avoid foreclosure especially when the amount of the mortgage is as much or more than the home is valued. This is a valid concern when developing a foreclosure avoidance strategy. However, don't allow it to be a road block for stopping foreclosure. There are methods to create equity in a home which appears to have no equity.

This method is called a Short Sale. A short sale is when the mortgage lender agrees to receive less than the balance on the home mortgage. Why would any lender take less than I owe? Because the cost of "taking a home back" is higher than the short sale offering price. The CBS evening news reported that the average cost of taking a home back was $50,000 to the bank. When a home goes into a foreclosure sale these days, the second mortgage lender will virtually always be left with no money from the sale. This is because the winning bid never goes high enough for the second lender to get any of the proceeds. This means that they are much more willing to accept a little money to release their lien on the property than to take nothing if it goes into foreclosure and is sold at auction.

A good negotiator/investor can generally get a short sale solution to work out for all parties involved. The first mortgage lender receives most or all of their money. The second lender receives a partial payment of what is owed instead of nothing if the foreclosed home had gone to auction. The homeowner avoids foreclosure and saves their credit rating to a large degree. And as a great benefit, they may even get to stay in their home and buy it back depending on the agreement with their investor.

Finding an investor to handle a Short Sale is without a doubt one of the best solutions when facing foreclosure and you are unable to accomplish any other method to avoid foreclosure. There are more advantages from a properly handled short sale than any other option especially when the home foreclosure involves a home with very little or no equity and all other options have been exhausted.

The Foreclosure Survival Handbook offers many additional alternatives to stopping foreclosure even if you have little or no equity in your home.