In general, the only way to keep your home is if you are able to make a normal monthly payment. Even if you can not afford your existing payment, we would be able to negotiate a lower monthly payment or do a loan modification. But if you could not afford a lower payment either, then there would be no reason to try and save the home from eventually ending up in foreclosure.
In many cases, it is better to do a short sale with the home to prevent any foreclosure proceedings and rent a place for a year while you repair your credit and get your finances back in order.
It only takes about 12 months to recover from losing a house before you can qualify to buy a home again. The key to recovery is to keep all your payments on time and re-establish a good rental and payment history. If you can do this for a period of 12 consecutive months and get the other negative items removed from your credit, then you should qualify for a new home loan.
When getting any loan, it is not just your credit that is reviewed, potential lenders will also look at your income, down payment, and the value of the home. Technically, if you can afford a higher payment, and there is enough equity, you could get a loan immediately after foreclosure. Lenders do not always look at credit as the sole determining factor. Lenders who provide these types of loan are called “hard money lenders". It is also possible to get a loan right away by having a co-signer. This is a great way to quickly re-establish your credit and mortgage history.
If you do decide to do a short sale, you will need to get the home listed with a real estate agent as quickly as possible. As soon as you get an offer, you will simply take it to your lender and offer it to them as a short sale. There are other issues and problems with a short sale, so you may wish to consult with a real estate professional who specializes in these types of cases in your area. Not all Realtors want to deal with the additional headaches of a short sale.
The ForeclosureFish website has been created to provide homeowners in danger of losing their houses with important foreclosure advice they can use to stop the process while they still have time available. The site describes various methods that may be used to save a home, such as foreclosure refinance loans, mortgage modification , short sales, bankruptcy, and more. Visit the site to read more articles about how foreclosure works and how the process may be avoided before it is too late: http://www.foreclosurefish.net/