short sale, prevent foreclosureIf you are a home owner who is struggling to prevent foreclosure, you have a few options. First, you have to contact your lender to let them know your financial situation. A few years ago, lenders would not have been as cooperative as they are now to help you prevent foreclosure. Now they will go to lengths to help you stay in your home, even if they have to accept lower payments until you are in a better financial position. The last thing banks need are more foreclosed homes on their books.

If you decide you have to sell, discuss how you can sell your home as a short sale. It may be that you can move your home quickly by listing it as a short sale. Chances are your lender will approve the short sale, so you will get out of your home without losing your good credit score. A home foreclosure will decrease your credit rating, so if you have to sell, do it as a short sale. It will save your credit and get you out from under stiff house payments you can no longer afford.