Introduction to Foreclosure - There are a number of different events and situations that lead homeowners to the brink of foreclosure, including an unexpected job loss, or even a severe medical emergency. However, a number of other actions, even simply choosing the wrong type of loan when you purchase your home can also send you into similar dire financial territory. If you should happen to take on a riskier loan, even if you do not have to pay a lot of money right from the start, you can find yourself facing foreclosure, especially if the interest rate on your loan is a variable rate meaning that it can go up when interest rates increase every year. It does not really matter what the reasons are for your dire financial problems. What does matter is that all is not lost. There are options and alternatives available to you that are well worth trying. You still may be able to save your home, by filing for bankruptcy, or re negotiating your mortgage. If you want to try to save your home by avoiding foreclosure, then you will benefit from reading the entire book. Keep in mind that avoiding foreclosure is no picnic. You will have to work hard, and be patient, but it is quite possible for many people to do so above all else: Do not give up. Let's start with the basics and move on from there. What is a Mortgage? - - A mortgage is a type of loan, an the loan is used to purchase a piece of property. The property that is being purchased is treated like a guarantee for the amount of the loan. This guarantee acts as a lien against the property. Once you have signed all of the papers associated with the closing of the sale, the lien will be recorded in public records in the county court house. Until you pay the debt off and have the lien released, you cannot simply sell your home to someone else. Even when a mortgage is in place and certain actions cannot be taken until the mortgage has been paid in full, you still have full ownership and full title to the property. The lien being held against the mortgage does, however, give the lender the full right to sell off the secured property to recover his or her funds if you fail to make regular payments on the debt that you owe. When applying for a mortgage, there are actually a number of different options available to you, including fixed rate mortgages, adjustable rate mortgages, balloon mortgages and interest only mortgages, just to name a few. For more information about these different types of mortgages, see the glossary at the end of this eBook. Foreclosure is the process by which your lender can legally take ownership of your home from you, if you should happen to fail to hold up your end of the bargain detailed in your mortgage or deed of trust agreement. Once the lender forecloses upon your home, you have to move out otherwise you will be forcefully evicted. In addition to losing ownership of your home, you can also lose a lot more. For example, you may still end up owing the lender more money, depending on the value of your home at the time of foreclosure. You will more than likely also destroy your credit rating in the process, which will make it much more difficult to buy a new home in the future. There are two different types of foreclosure that you can find yourself facing: Judicial foreclosures, and non-judicial foreclosures. In either case, your property will more than likely be seized by the lender and put up for auction, and the highest bidder will become the new owner. In some cases the lender bids on the house during the auction, at whatever price the debt is owed at. If no other buyer bids higher than the lender, the lender wins the property and is able to turn a profit on your home and to get back all of the money that they lost in the transaction. Pre foreclosure is the time period that exists between the day that the lender notifies you that a foreclosure lawsuit has been filed or the day that a Notice of Default has been filed, and the actual date that the property is slated to be sold at a public auction or in a trustee's sale. Just because you receive a notice like this, it simply does not mean that you have lost the fight. You still have the possibility of preventing a foreclosure from occurring. For example, if you want to you can sell the property, or you may consider filing for bankruptcy. You may also consider refinancing, or devising a workout plan with your lender. The most important thing to understand is that all is not lost, and that you still can save your house. The foreclosure rates are growing rapidly, and the number of homes being foreclosed upon in recent years has shot up significantly from the numbers a decade or two ago. You are not alone in this, and there are hundreds of thousands of other people all over the country who are fighting this same process at the exact same time. Colorado, Illinois, Texas, Florida and California all experience some of the highest foreclosure percentages in the county. The state of Colorado experienced 68,310 foreclosures in 2006 alone. Illinois had 75,176 foreclosures in the same year. Texas, Florida and California saw steep increases in foreclosures, with 106,845, 120,989 and 157,417 respectively. Do not become a statistic, by falling into this drastically growing number of foreclosures. Homeowners and families are not meant to be statistics. Now is your time to act, regardless of whether you are just falling into a debt problem, or have already received a foreclosure lawsuit notice, or a Notice of Default letter. There is still time to save your home, your credit rating, and your financial situation, as long as you are willing to take the advice presented within these pages and to promise not to give up as long as you still have options and alternatives to explore. Many people have managed to ward off foreclosure by re negotiating terms with a lender, by declaring bankruptcy, or by selling their homes on their own. There are options available to you, and all is not lost by any means. Are you ready to figure out what your options are? The first thing that you need to understand is that not all opportunities out there are legitimate, and yes, there are unfortunately a lot of people out there who want to take advantage of you in your dire financial situation, so let us address foreclosure scams first before we begin to touch on the options available to you for avoiding foreclosure, surviving foreclosure and getting back on your feet after a foreclosure occurs.

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