One thing that homeowners don’t want to happen is to have their home up for foreclosure. It’s heartbreaking to know that the house they worked hard to build or find will end up as another person’s possession. If you fail to make payments on time, it’s still possible to prevent your lenders from taking back your property.

How Filing for Bankruptcy Can Help

Filing for bankruptcy doesn’t mean that your lender is cancelling the home mortgage completely. It can only get rid of credit card debts and other bills, which might help manage your mortgage payments better and give you time to reorganize your expenses. Filing for bankruptcy can prevent foreclosure, as the court will have to handle your bankruptcy case. Many find this process complicated, though, so it is advisable to hire a foreclosure lawyer for assistance.

How the Government Can Help

The federal government has sponsors that hold programs to help people avoid foreclosure. As a matter of fact, there are specific programs that focus on helping people who lost their jobs or have lower home value. Find out if you’re qualified to apply for a government loan modification through the Federal Housing Administration’s National Servicing Center. These programs can help lower your balance, house payments, and interest.

How Traditional Refinancing Can Help

If you don’t qualify for any government program, you don’t have to lose hope because you may still qualify for traditional private refinancing. Another lender might give you a new mortgage with lower interest rates if you have good credit and your income is stable. This also makes your expenses more manageable, but you don’t have to sacrifice your credit score unlike filing for bankruptcy.

Don’t panic if your house is up for foreclosure. Find ways to prevent it by following the methods mentioned. Hiring a good foreclosure lawyer can also give you more options.