Foreclosure is a financial and legal issue. If you attack the issue from a financial standpoint, you must to have cash to pay your mortgage. If you attack it from a legal standpoint, you must be able to find a flaw in the foreclosure lawsuit to dismiss it. I don’t see any other way of stopping foreclosure.

If you are facing foreclosure at this moment, you are inundated by letters from foreclosure assistance companies that charge outrageous amounts of money to negotiate with your lender; the majority of these companies are a scam.

You also get creative letters from so-called “investors” offering free advice and with the intention to make you sell your home to them at a deep discount using deceptive kitchen table closings in which they make you sign mysterious paperwork (land trusts, etc) that basically transfer the title/deed of your home to them sometime taking over your mortgage payments and leaving the loan liability on your name. Some of this “investors” also offer very deceptive “lease-back” arrangements in which they let you stay in your home as a tenant, and they pray that you stop paying rent so that they can evict you so that they can take possession of your house. You also get letters from Realtors® who are trying to make you list your home for sale and paint a rosy picture of the real estate market and the value of your home (Read National Consumer Law Center’s report “Dreams Foreclosed;” one of the best studies recently written about the rampant theft of American’s homes through equity-stripping foreclosure rescue scams).

Last but not least dangerous, you get letters from nice attorneys offering free consultations to make you file Chapter 13 bankruptcy; what these attorneys don’t tell you is that based on research (see studies: The Realities of U.S. Personal Bankruptcy under Chapter 13, and Chapter 13 Bankruptcy: Successful Versus Unsuccessful Debtors) the overwhelming majority of Chapter 13 filers do not complete their payment plans and are not discharged.

You will also find on the internet a proliferation of eBooks that promise to stop foreclosure magically with names such as “Foreclosure Free Zone,” “The Fight Of Your Life: How To Beat The Foreclosure Demons Smart Solutions For Saving Your Home,” “Avoid Foreclosure And Fix Credit Problems,” ”Foreclosure Help – Don’t Let The Bank Take Your Home!“ In my research, I’ve even bought some of these type of eBooks just to see what’s so magical about them, and found that they don’t have any information that isn’t common sense and readily available for free online. All the advice in these books fall into these categories: 1) Talk to your lender, 2) Sell your home, 3) File for Chapter 13 bankruptcy protection, and 4) Refinance/Get a loan. None of these books, nor the Chapter 13 attorney, nor the Realtors®, nor the “investors” in their white horses tell you about your legal rights and how you can defend yourself from the abuse of the debt collector attorneys.

Foreclosure is a financial and legal issue. If you attack the issue from a financial standpoint, you must to have cash to pay your mortgage regardless of negotiating a payment plan with your lender yourself or through a foreclosure assistance/consulting company. Bear in mind that when negotiating a payment plan with your lender (sometimes called Forbearance Agreement) , you may be required to come up with a lump sum (usually half of your past-due payments) and proof of income. It’s very simple; if you have sufficient cash and/or income to pay your monthly mortgage obligation, it’s very likely you can negotiate something with your lender to stop foreclosure. If you don’t have the cash and/or the income, you will have to attack the issue from a legal standpoint.

If you attack the issue from a legal standpoint, you must learn about your legal rights and, preferably with the help of a consumer protection attorney (www.naca.net), find a technical or legal flaw in the lawsuit to have it dismissed. These flaws could be hidden in the lender’s debt collection attorney not following your state’s rules of civil procedures (for instance: You were served improperly) or by digging into the foreclosure complaint and court docket to see if there is an actual plaintiff’s proof of ownership of the promissory note, or if the original promissory note has been filed in the court records, or any of the other twenty-something reasons that that could render a judgment void or invalid.

There is no magic in foreclosure. If a homeowner doesn’t pay his or her mortgage, the lender will foreclose on their homes. There is no magical negotiation with a lender that can be done without cash at hand and/or ability to pay supported by proof of income. There is a lot of literature on the internet and in bookstores about the debt collection industry, on how to stop foreclosure negotiating with the mortgage lenders, about how debt collections works, about what to expect from debt collectors, etc, etc. However there is little information about how to navigate the legal system, on how to file pleadings and motions and on how to execute the steps necessary to win the debt collection/foreclosure battle in court. Almost nobody explains to homeowners in simple terms how the legal system works and how they can use it to your advantage to win debt collection lawsuits.

The UK mortgage market looks set to improve offering borrower’s new cheap mortgage deals as banks agree to finance support conditions. Banks have agreed that borrowers will be able to get more competitive, cheap mortgage offers with rates set to return to 2007 levels and for at least three years so a cheap mortgage for borrowers looks like its on the cards. Welcome news for UK homeowners as cheap mortgage offers have been disappearing since the credit crunch bit.

The banks have also said they will be cheap mortgage deals for all as they agree to support schemes for those struggling with mortgage repayments to stay in their homes and to support expansion of financial capability initiatives.

Banks taking the government financial help will have to achieve a certain level of funding therefore will need to increase lending so we should start to see a more competitive market and cheap mortgage offers available across the different types of mortgages.

A recent survey of mortgage brokers revealed a return to cheap mortgage for all view is expressed by this group also suggesting a return to a competitive cheap mortgage market. Mortgage brokers’ forecast improved future business compared to May or July this year. Exact figures for the future of the business have been predicted as a decline of between 0.4 per cent (for remortgages) and 2.3 per cent (for first time buyers) over the next two months. Much more positive outlook than was given in May this year of a predicted fall of almost 5 per cent for first time buyer business, 3.6 per cent for home movers and 3.4 per cent set at 3.4 per cent.

Peter Williams of the intermediary Mortgage Lenders Association executive director, said: “These survey results which were obtained before the latest volatility in international markets appear to offer a glimmer of hope that confidence among mortgage brokers is starting to return, very slowly.” So mortgage brokers also believe the market will return to offer cheap mortgage again. Peter went on to say “Although a cheap mortgage may take some time as a recent Bank of England credit conditions survey points towards tighter lending criteria in the fourth quarter.”

Cheap mortgage deals available at Northern Rock as it reduces its variable mortgage rates following the Bank of England rate cut to 4.5 per cent. However if on its standard variable rate (SVR) not so cheap mortgage for you as it is only reducing it by 0.15 percentage point to 7.34 per cent, a  high rate for the market and certainly not a cheap mortgage rate.

This news certainly won’t please borrowers especially existing customers of Northern Rock who have in the past got a much cheaper mortgage, sometimes 100+ per cent cheap mortgage and are now faced with not only finding it impossible to find a cheap mortgage but to remortgage to an improved mortgage deal.

There is a cheap mortgage out there for you. By using the services of a mortgage broker you can find a cheap mortgage. A high quality mortgage broker will search the whole of the market to find a cheap mortgage for you and one with the best conditions.

Are you a homeowner who is facing foreclosure? If so, you may be unsure as to what your options are. Now is the time to find out. Why? Because you may be surprised how many ways there are to avoid foreclosure. When foreclosure is avoided you can either retain your home, keep your credit in good standing, or do both.

When facing foreclosure, the first step you should take is to approach your bank. It is best if you do this before the issue of foreclosure arises. Once it does, it is still not too late to schedule a meeting with the chief loan officer at your bank. If you can prove that you intend to get your mortgage back in good standing or that your financial troubles are only temporary, your lender may hold off on foreclosure.

Even if your lender is willing to work with you, keeping your home may not be in your best interest. If you are having long-term financial hardships, it may be within your best interest to sell your home before it enters into foreclosure. When making this decision, you may want to talk to your lender. They may agree to allow you to proceed with a pre-foreclosure sale. In fact, they may hold off on the process of taking your home, giving you ample time to find a new buyer. When selling your home as a pre-foreclosure, your home can be listed as for sale by owner or through a professional realtor.

Even if you do not consider a pre-foreclosure sale to be an option, you should expect to hear from hopeful buyers. When you are delinquent on your mortgage, especially to the point of foreclosure, this information becomes public knowledge. Some buyers, namely professional investors, seek out those in trouble. Although having a stranger appear at your door or call offering to buy your home may be rude, it is a decision that you may want to give serious thought to.

Another option that you, as a homeowner, has during foreclosure to hire the services of an attorney. When doing so, see those with specialties in foreclosures or real estate. A lawyer can advise you on what steps to take. They can help you understand the pros and cons of pre-foreclosure sales. In some states, attorneys can use bankruptcy as a tactic to stop the foreclosure proceeding. Although not a long-term fix, it may buy you more time to make a decision. It is important to note that bankruptcy, by itself has a whole list of pros and cons.

Most states have what are known as redemption period laws. These are designed to protect homeowners. They give you a grace period to reclaim your home. If you can make good on your mortgage payment, the foreclosure proceedings will stop. States that have these laws often enable you to reclaim your property even after it has been sold at a foreclosure auction. This is provided that you act within the allotted time frame.

If you reside in a state where you are not given a grace period or a redemption period, you always have the option of buying your home again. Anyone can place a bid at a foreclosure auction. With that in mind, placing a bid and being the winning bidder are two different things. It often takes a significant amount of cash to reclaim your home. Your financial lender will also likely attend waiting to pounce. If the bids are not high enough, they will buy your home themselves. This is done to minimize their money lost. Later, your home will be available for sale as a REO (real estate owned) home.

As a real estate investor in Central Florida, I’ve come across many homeowners who are facing foreclosure for the very first time and they all seem to make the same mistakes. When you have fallen on hard times due to a job loss or a mortgage reset, it is easy to feel depressed, helpless, and think “I’ll just let them take the house”. But you must realize that there are many solutions available to avoid foreclosure and save your home! The following are common mistakes you should avoid in order to prevent foreclosing on your home:

1. Paying For Foreclosure Prevention Services

Search the Internet for “foreclosure help” and you are bound to encounter countless foreclosure agencies that, for an upfront fee, will stop your foreclosure. Their fees will cost you thousands and many of these agencies just take your money and let your home fall into foreclosure. What these agencies do is contact your lender on your behalf and ask for a lender workout. A lender workout is a relatively simple process that you can do yourself and save thousands in costly fees. If you are interested in learning more about doing a lender workout yourself, complete with letter templates, you should consider this lender workout foreclosure solution.

There are numerous foreclosure scams being run through direct mail and the Internet. Before you sign any documents or send a check to anyone, you should look the company up through the Better Business Bureau, Yahoo, and Google for complaints. If you are asked to sign a “Quit Claim Deed” or any other documents that transfers ownership of your home, you are most likely being scammed. Should the company or person ask for a large upfront fee with no guarantee or contract agreement that outlines the details of his or her services that should also signal a red flag. Hang up the phone and walk away. You should always see everything in writing and have written guarantees from anyone claiming to stop a foreclosure for you.

2. Ignoring The Lender

Believe it or not your lender is your best friend during foreclosure. If you are facing foreclosure, the lender has every right to your home. After all you did grant them a mortgage on your home. The good news is that your lender does not want your home; it simply wants you to make payments on time so they can get their money back. You should maintain contact with your lender and explain to them the reasons why you have missed payments. Your lender may consent to a forbearance agreement, loan modification, or a delayed repayment plan.

Your lender will want to work with you because if you do foreclosure it will cost the lender between $30,000 – $40,000, the lender is not in the business of owning real estate, and foreclosures on lenders’ books makes it harder for them to obtain low-interest capital for future loan portfolios. Do not stick your head in the sand by ignoring your lender, educate yourself on your options and then contact your lender.

3. Feeling Overwhelmed And Not Seeking A Solution

More often than not homeowners in foreclosure have pressing day-to-day life issues, and are simply too overwhelmed to adequately find solutions to their foreclosure. Many then succumb to fraudulent foreclosure agencies or unscrupulous real estate investors who cost them their home. If you have no equity, no savings, and are one or multiple payments behind on your mortgage they are simple ways you can stop foreclosure or relieve yourself of that hefty mortgage payment and find something more affordable. You do not necessarily have to sell your home or if you must vacate it, you don’t have to go through the trouble of waiting for a buyer and you can still save your credit for a more affordable home purchase in the future.

4. Not Taking Advantage of Government Programs And Resources

The Federal Housing Administration has designed a program just for homeowners who can no longer afford their mortgage because of an adjustable-rate mortgage reset, or homeowners who are in “interest-only” loans are may now have to begin to make principal payments. You can learn more about the FHASecure Refinancing program at http://www.fha.gov or search for FHA-approved lenders at http://locator.fha.gov. You may also seek the counsel of a HUD-approved counseling agency at 1-800-CALL-FHA.

5. Not Having A Home Equity Line of Credit (HELOC)

A foreclosure stands a good chance of being prevented or delayed if a HELOC was established before the homeowner ever missed a first payment. Unforeseen events such as job loss or medical problems will make it difficult, if not impossible, to obtain access to low-interest lines of credit , so it is important to have a HELOC ready for emergencies. A HELOC should not be used for frivolous expenses, but for real emergencies such as medical expenses or fees associated with getting yourself out of foreclosure. In the event that you lose your job, you can use the HELOC to pay for necessities until you are back on your feet and can repay the loan. Most HELOCs do not have a monthly fee if you do not access the line, so if you are in a position to set-up a HELOC you should do so as soon as possible.

6. Spending What Money You Have On Other Bills

Though it may seem easier to pay your utility, credit card, and cell phone bills before you make payments towards your mortgage the reality couldn’t be further from this notion. After 3 or 4 missed payments the lender has the right to “accelerate” or “call” your home loan and insist on getting all back payments at once. If you plan to keep your home you should cut all of you unnecessary expenses such as cable and cell phones so that you can devote what little money you have to pay for your house. There are many methods to prevent foreclosure, and will you need to have cash available to cover expenses. Keep in mind that in order to get the mortgage company’s consent to a forbearance agreement or delayed repayment plan you need to prove to that you made every reasonable attempt to make mortgage payments.

7. Missing Bankruptcy Filing Deadlines

A Chapter 13 bankruptcy filing will stop foreclosure dead in its tracks. However, you should explore all other foreclosure solutions and consider bankruptcy a last resort. If you decide that Chapter 13 is the right answer to your situation, then you should be sure to meet all filing deadlines and make all payments outlined under the plan or may end up losing your home.

8. Not Moving Quickly Enough

Time is of the essence when you are facing foreclosure. Once you begin to miss payments the bank can accelerate or call the loan, and you will then have to come up with all of the back payments at once. Or, if you are in states such as Texas, it can be only a matter of three weeks before you are forced out of your home. You should be diligently seeking solutions for your foreclosure

9. Not Being Persistent

If you decide to do a lender workout you will have to put a considerable amount of effort into gathering your financial information, writing letters of hardship, finding the right numbers to dial, and having the patience to sit on hold for HOURS while you await your chance to speak with a representative from the mortgage company. This will be a very trying experience and there is no guarantee that the lender will consent to anything you may suggest. Before contacting your lender you should have everything you need in order, including the numbers to dial, to ease the stress of this entire process and you must be persistent with the representative you are assigned (if you even are assigned one).

10. Not thinking creatively

Many homeowners assume that if they cannot make payments on their home their only options are to foreclosure or file bankruptcy. And even still, many individuals are not even sure how to go about those options. Before you jump the gun and quickly go down the wrong path be sure you have explore all avenues to get yourself out of your situation. Have you considered renting? Selling a fraction of your home for the amount in arrears? Have you spoken with a reputable real estate investor who may be willing to negotiate a deal so you may keep your house?

More than a third of homeowners predict they will be nearing retirement before they own their own home, new research suggests.

Responding to a One Account survey, 36 per cent of homeowners predicted they would be at least 60-years-olds before they paid off their mortgage.

A further 20 per cent didn’t expect to fully pay off their mortgage until some time in their 50s, with many also complaining that mortgage commitments were impeding on other areas of their life.

More than two in five claimed not to be able to save because of their mortgage, while nearly one in five 25 to 29-year-olds said it was forcing them to delay starting a family.

However, Debbie Milsom from One Account questioned why homeowners were finding their mortgage such a burden.

Paying off a mortgage should not mean that people have to put their life plans on hold, Ms Milsom said.

She added: It is worrying that homeowners perceive that it will take them until they are in their 60s before they pay it off when they should be spending this time preparing financially for their futures.

Ms Milsom reminded homeowners that there are often flexible solutions for managing payments.

Homeowners with overly expensive payments may also find remortgaging can help to reduce their monthly commitment.

As less people are putting money into pensions, more could begin looking at remortgaging to ensure economic stability during their later years.

Figures released by Moneyfacts have shown that personal pension returns have fallen by as much as a half in the last decade.

The news means that even if Britons are putting the same amount of money into their pension pot every year, their average with-profits pension fund could be half what it would have been in 1996.

These latest figures should serve as a powerful reminder that securing a comfortable retirement will only be possible for those individuals who actively monitor and manage their own pension provision, warned Richard Eagling, editor of Investment, Life & Pensions at Moneyfacts.

The research from Moneyfacts could cause more people to consider other options of financing their retirement, with taking out a remortgaging and downsizing their homes one method to increase the amount of money available in later life.