It's good to know that more Americans than ever before are able to realize their dream of owning a home. Unfortunately, the number of people burdened by big debt and home foreclosure is also increasing.



What it means

Foreclosure is the legal process through which the lender, a bank or a mortgage company, takes back what is theirs because the borrower failed to meet the requirements of the contract and did not make payment on their loan on time. A mortgage payment is not like a credit card where you can make a partial payment. It is all or nothing. If your mortgage payment isn't made within 60-90 days, the foreclosure process will begin.

One of the main reasons people end up in foreclosure is because they agreed to an ?exotic mortgage? that has teaser interests rates. They may have a low interest rate for a certain period of time in the beginning and then it increases, sometimes more than once, thus, their payment goes up, stretching their budget even more until they can no longer handle it. Other reasons for foreclosure include loss of job, pay cut, loss of overtime, divorce, and heavy credit card debt.

Stages of Foreclosure

Generally, there are four stages of foreclosure:

1.Redemption?you're given a date, called a cure date, by which all missed loan payments must be paid in order to avoid foreclosure.

2.Default'if you don't bring it up to date by the cure date, you will receive a notice of default.

3.Foreclosure'if your payments are not paid even after the default notice has been posted, the lender has the right to foreclose on the mortgage and take possession of the house. If you still occupy the home, the lender can get a court order for eviction.

4.Sale?the lender can sell the home at a public auction.

What you can do to avoid for closure

Call your lender as soon as possible and have all your financial documents ready so you can discuss your loan. Also, contact the lenders mitigation department to find out if a payment option is available. Depending on your specific situation, lenders can offer retention options or liquidation options. Remember, it's in your best interests to talk to your lender instead of ignoring it until it's too late.

About Christian Credit One, Inc.

Christian Credit One, Inc. is a national, non-profit Christian Credit Counseling organization dedicated to helping consumers achieve financial wellness through Christian credit counseling and education. Established in 1994, Christian Credit One has helped over two million individuals achieve financial security. Christian Credit One is one of the top members of the American Association of Debt Management Organizations (AADMO), Christian Credit One manages clients across the country. Personalized and confidential consultations are available in person, by phone or online. Visit Christian Credit One or call 888-767-9155.

Greg McTaggart, Certified Credit Counselor with 22 years experience, licensed by AFCPE, Director of Christian Credit One and is an expert in budget and Christian credit counseling Having the combined experience as a licensed Real-estate salesman, Mortgage Broker, Real-estate Broker, Notary, Ace Member of the Cincinnati Credit Executives, Mortgage Assistance Counselor and Spokesperson of the radio talk show The Money Mentor, Greg McTaggart is a qualified Christian Credit Counselor to help you.