1. Re-Instatement ("Bringing your loan current"): Re-instatement occurs when the loan is brought current by paying the total amount past due. You have an absolute right to fully re-instate your loan within 90 days of being served with a notice of default. Lenders will normally accept full re-instatement at any time before the foreclosure sale occurs, even though they are not required to by law. Call your lender or trustee to obtain the amount to re-instate. The total amount paid must include all back payments, late charges, inspection fees, any advances, attorney and trustee fees.

2. Repayment Plan: A repayment plan is an agreement to bring the mortgage current over time. The terms are generally a payment of ½ of the original mortgage plus your current mortgage payment, however the lender may be willing to negotiate.

3. Redemption: Redemption is the act of paying your loan off in full. You have the right to pay off your loan anytime during the redemption period, which lasts until 10 days before the foreclosure sale. Redemption can include paying off the loan through the sale or refinance of the home.

4. Refinance: It may be possible for you to avoid foreclosure by refinancing your current mortgage, however there are several factors which may disqualify you for a refinance. These include:

• Equity - You may need 30% to 40% of equity in your home to obtain a refinance
• You must be currently employed and in the same line of work for a minimum 2 years.
• Must be able to document your income

Also, when refinancing a mortgage that you are behind on or have had several late payments, you may end up with a higher interest rate, paying high closing costs, and will probably have a higher mortgage payment than what you have now.

5. Loan Modification: A loan modification refers to changing the terms of your loan. These changes can include decreased interest rate, lowering the payment, extending the terms of your loan or reducing the amount owed.

6. Deed In Lieu of Foreclosure: A deed in lieu of foreclosure is a surrendering of your home to the bank for the balance owed to the lender. By accepting the deed, the lender releases you from personal liability on the loan. A lender will not accept a deed in lieu of foreclosure if there are other liens on the property. If a deed in lieu is accepted, you must vacate the home, typically within 30 days or less.

7. Sell Your Home: If you are in a home that you simply cannot afford, this may be the best option. Contact a qualified professional as soon as possible to get your house on the market and be realistic about the price. If you need to sell the home quickly, you may need to offer it at less than the local market value.

8. Short Sale: A short sale is the sale of a home when you owe more than what is worth. The lender(s) must agree to take a loss on the home. This is a great option for people who are upside down in their homes and need to sell. The lender will typically take a loss, however will typically not pay for any repairs, termite work and home warranty's, but will pay all fees associated with the sale including commissions, back taxes, liens, title and escrow fees, and in some cases buyers closing costs.