First of all, you need to be aware that a mortgage lender can foreclose your home for two reasons. The first one is defaulting on your payments. Generally, lenders will issue a Notice of Default if you miss three mortgage payments consecutively. Another possible ground for foreclosure would be a violation on a major regulation or policy of the lender.
What You Can Do
However, in most cases, the reason for a home foreclosure is due to a default in payments. For some home owners, they waited too long before taking any appropriate action that would have prevented foreclosure of their property. If you currently have a mortgage loan, it is important to be constantly aware of your payments. If for some reason, you miss one of your payments, speak with your lender right away and inform them the cause of your delay. Dont wait until the second or third delay on your payment or for a Notice of Default before taking the initiative to contact your lender.
Even if its just a single payment that you missed, it would be to your advantage if you talk with your lender right away. This is especially true if you know that there is risk that you might not keep up with your monthly mortgage for the coming months. You may have been sick and cannot go to work, or you might have needed the money for an emergency or you might have been laid off from work. In case, it will not help if you just stay quiet or attempt to hide from your creditors.
For many people, receiving a Notice of Foreclosure is the end of everything. But this is not true. You will still be given some time before the actual foreclosure takes place. What many people do not know, is that banks and lenders are not too happy about foreclosing properties. Putting up a property on sale involves lots of work, time and money to get things done. If you speak with your lender, they would be more willing to extend you the time you need to make your repayment.
Mortgage lenders have made provisions for cases of pre-foreclosure properties. They can waive some of your penalty fees to help you repay your unpaid mortgage more easily or what is commonly called Forbearance. They can also give you an extended time period so you can find enough money to repay your dues or what is known as Reinstatement. A mortgage company can also enable you to refinance your existing mortgage loan without the need to go through the whole process of re-application. This is known as Loan Modification which means you can be granted a new loan without the need to wait for an approval or processing.
With these provisions in mind, it would buy you more time if you talk to your lender as early as possible. This way, your lender can also have sufficient time to make the needed adjustments on your mortgage terms. If you decide to wait until they have already filed foreclosure, it will only be more difficult for you to request for adjustments.