Most mortgage lenders have set rules about how long a person can miss payments before getting threatened with foreclosure. Likewise they have guidelines outlining the ways a person can stall the foreclosure process. Foreclosure solutions that are ethical include non-profit organizations that help a person determine a realistic budget to pay down debt while still surviving normal life expenses such as food and gas in the car to get to work. Any organization asking for money outright is probably a scam or company with alternative motive such as debt consolidation and loan modifications which may scar a person’s credit for up to 10 years. Having to file bankruptcy can be just as harmful to credit scores as foreclosure itself. Filing for Chapter 13 bankruptcy can include lowering interest rates, changing payment amount, and refinancing to get the extra cash because of court ordered repayment plan.
The threat of losing a house is more serious than losing any other possession due to the bankruptcy filing which may temporarily impair all other areas of finance and life in general. Alternative Foreclosure solutions can offer a break even if a valid reason according to the mortgage company is not applicable. This is a second chance and should not be used hastily, however the damage created by foreclosure can eliminate the possibility of a second chance. Keeping communication lines open with the mortgage company will create the opportunity for second chance, avoiding them and ignoring letters will not. Even if the answer is there is no money they want respect for lending the money.