10 Legally Permissible Ways to Prevent Foreclosure ...


Prevent Foreclosure by budgeting, paying attention to your finances, being smart with money -- there are many ways to keep foreclosure at bay. Foreclosure used to be a somewhat rarely heard word but these days it is commonplace. The chances are, if you are facing foreclosure already, then you won’t be reading this blog post and it will be too late. If you are struggling to steer the ship of finance on a steady course then follow some of these ways to prevent foreclosure and you might just be able to save your home. Your home is the most precious thing you have, and that’s both in an emotional and a physical sense, so take a look at these 10 Legally Permissible Ways to Prevent Foreclosure.

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Time is of the Essence

If you are struggling to get those bills paid in time, it is essential to prioritise them. Advice from professionals is to always make your mortgage payment ahead of any other bills. Sometimes you have to prevent foreclosure by making tough but necessary choices. Getting your mortgage payment in on time is more valuable than paying for the electricity. You can live without the electricity for a while, but you can’t live without a roof over your head.


Save on Partial Payments

Banks have the right to refuse any partial payments, but the worst thing you can do is then use the returned payment to pay for something else. Hold the partial payment and save up until you can make the full payment. Do NOT spend it.


Evaluate Your Budget

It may seem obvious but to prevent foreclosure your budget is key. Now isn’t the time to be thinking about cutting down on a few luxuries. This is the time where even essentials have to be re-evaluated. Pare everything down to the minimum. Set a household budget and stick to it. Employ every means available to cut costs.


Realism and Reality

Sometimes the only way to prevent foreclosure is to admit defeat and admit to yourself that you can’t afford your current home any longer. Sell your house and find somewhere cheaper. Although it might be tough, this is a much better option in the long-term than foreclosure as it will not ruin your future chances of owning the home you always dreamt of.



If you are deep in the battle to save your house then keep track of all foreclosure deadlines and use every method at your disposal to prevent foreclosure for as long as possible. Remember, you can save your house minutes before any final verdict is handed down or any sale is held.


Alteration Magic

If your mortgage company is merciful then they may be open to altering the terms of your agreement. This can include loan modifications, payment terms, and a variety of other things. However this will depend on your mortgage company as to which aspects of your agreement you can alter. Shop around or engage a skilled mortgage broker with a reputation for results.


Take Stock of Assets

There are some loan programs to prevent foreclosure if there is equity in your home (i.e if the market value is more than the mortgage value). One such type is reverse mortgages although these tend to be available to older homeowners. They are still worth investigating.



Sometimes foreclosure can occur just because of a mistake on behalf of the mortgage company. If the possibility of foreclosure is upon you then check with the mortgage company just in case there is a mistake. Send them all the required documents and save any documentation.


Call in the Cavalry

There might be some recourse in law which could prevent foreclosure but at this stage you are likely to have finds to pay a lawyer. Research local organizations who provide debt and legal advice for advice for free. Non-profit councillors are available to people in order to prevent the foreclosure of their homes. Sometimes these councillors can be just as good as their lawyer equivalents, so don’t despair because all is not lost yet!


Friend or Foe

By law, your foreclosure is made public knowledge, and this means you can expect a variety of people turning up on your doorstep in order to “help” you. This assistance comes in various forms and preys on your insecurity. These people aren’t doing it out of sympathy with your plight – it’s how they afford their country mansions and luxury penthouses. Stay clear of these “solutions”.

These Legally Permissible Ways to Prevent Foreclosure are here to act as a light in life’s darkness. If you are worried or you are desperately trying to prevent foreclosure then follow some of these tips, and remember that people do get through it. Are you experiencing or have you experienced the threat of foreclosure in the past? If you have any other advice on how to prevent foreclosure, we would love to hear it.

Top Photo Credit: respres

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