Even With an FHA Loan Stop Foreclosure Is Possible

When you took out the mortgage on your home, you may have been offered an FHA loan. This is a mortgage that is basically backed by the government. They are guaranteeing to the lender that you will pay, and if you don’t, that the FHA (Federal Housing Administration) will step in and take care of the loan.

It has always been thought that with an FHA loan stop foreclosure was not possible, but that is not the case. You can still negotiate with your lender and the FHA to make sure you don’t get kicked out of your home.

First of all, they may offer to have you essentially give up the home to the lender in exchange for writing off the mortgage. This type of sale leaves the lender with the property, that they will eventually sell. You are out of a home, and may actually still owe money to the lender.

They may offer to let you try and sell the home, although in today’s economy that may not be a viable option. With an FHA loan stop foreclosure is possible by doing this, but only if you have substantial equity in your home and can get a good price for it.

The FHA will also negotiate with you and offer repayment plans or loan modification, which is one of the most popular programs. By renegotiation your FHA loan stop foreclosure is actually possible. You could end up paying several points less in interest, and see your monthly payments drop substantially, all while keeping your family in their home. The FHA is there to help you, but don’t wait too long or the choices you have will really be limited.