Receiving notification of pending house foreclosure is a gut-wrenching experience. No one wants to have their home repossessed by the bank, but in order to stop foreclosure homeowners must become highly proactive in talking with their mortgage lender.

Banks can cease house foreclosure proceedings if homeowners earn adequate income to make future payments. Options can include loan modification, mortgage refinance, deferred payments, and real estate forbearance plans.

Homeowners are notified of pending foreclosure long before repossession occurs. Banks are required to provide homeowners with a Notice of Default which provides opportunity to cure mortgage arrears before a Lis Pendens (preforeclosure) notice is filed.

Homeowners must become proactive as soon as they realize they cannot meet mortgage obligation. Unfortunately, a lot of people become paralyzed with fear and avoid contacting their lender. They hope they will find the money they need or come up with a million reasons they will call tomorrow. The longer homeowners wait to make contact, the fewer options will be available to them.

Once homeowners default on their mortgage note it is turned over to a bank loss mitigator. Their primary role is to minimize financial risks to the bank while helping homeowners cure mortgage arrears. Speaking with a loss mitigator can sometimes be challenging because most are overwhelmed with a staggering level of delinquent loans. Homeowners must remain proactive in contacting their lender.

If loss mitigators do not return phone calls in a timely fashion, homeowners should send a certified letter to request a meeting. Sometimes, homeowners may need to visit the lender in person and talk with the branch manager. It is crucial to do whatever is necessary to arrange a meeting, even if it means taking time off work.

Borrowers who are struggling to meet mortgage payments may find it beneficial to apply for help through Obama's Making Home Affordable program. MHA offers a variety of foreclosure prevention options including loan modification, mortgage refinance, and mortgage principal reduction, as well as foreclosure alternatives of short sales and deed in lieu.

Making Home Affordable programs are available to homeowners with loans originated or guaranteed by Fannie Mae, Freddie Mac, and over 100 participating lenders. When homeowners submit a request for mortgage help through MHA, banks are required to respond within 30 days.

If homeowners are unable to continue making loan installments they might qualify for help under Home Affordable Foreclosure Alternatives (HAFA). Available options include real estate short sales and deed in lieu of foreclosure.

Short sales require homeowners to list their property through a realtor for a minimum of 120 days prior to submitting a short sale request application. Homeowners must meet eligibility requirements which include residing in the property as the primary residence and the ability to demonstrate severe financial hardship.

Deed in lieu involves giving the house back to the bank and vacating the premises. Neither option allows homeowners to keep their house, but do give opportunity to be released from mortgage debt. Those who apply via MHA can receive up to $3000 in relocation assistance funds through the Exit Gracefully program.

Homeowners who are delinquent with loan installments may find it advantageous to obtain HUD housing counseling. The Department of Housing and Urban Development provide free counseling services and can help homeowners negotiate with their lender to stop house foreclosure or minimize the trauma of having property repossessed.

About the Author:
House foreclosure is a scary experience, but with the right tools and knowledge it can be less stressful. California real estate investor, Simon Volkov shares a wealth of foreclosure prevention information and resources to help homeowners become educated about available options. Visit www.SimonVolkov.com to find out which is solution is best for you.