What many people fail to realize is there is actually a process to the foreclosure proceedings. Although you receive notice that the lender is starting to foreclose on your home in as little as three to six months of being delinquent on your mortgage, it is still going to take them at least another six months to a year to actually get the approval from the bank.

Therefore, here are the four steps to stay in your home mortgage free for at least a year and a half during foreclosure.

1)      Ignore the foreclosure statements – It sounds crazy, but there is no need to remove all of your belongings as soon as you get notice. As I mentioned it takes about six months to a year to even get the courts approval.

2)      Once your first year is almost up, if you have income, you can try to start your own loan modification – All you need to do is contact the bank and show proof that you can pay a lesser amount of the mortgage. This process usually takes a couple of more months to get an approval or denial, but meanwhile, the bank will put a hold on the foreclosure proceedings.

3)      Contact a bankruptcy lawyer – Also after the first year, contact a bankruptcy lawyer and begin the proceedings. Even if you can’t afford to pay the bankruptcy, this also stops the foreclosure proceedings until everything is verified.

4)      Due a short sale – Believe it or not, this proceeding alone can take up to a year. This is probably your best option. Because banks are overwhelmed with foreclosures, once they receive a contract on a home, they will postpone the foreclosure until they come up with a decision on the short sale. Most of the time the short sale is accepted and if not, then they will just negotiate it up a little higher. Either way it buys time.

If you are in a situation where you may loose your home, do not panic. There are many options for you including contacting the HUD programs that help pay for some of your mortgage payments, depending on how much you owe and what you can now afford.

If you find that HUD can’t help and the foreclosure is still in progress, then try the above. You will be surprised at how much time they can buy you.

Whatever you do, do not abandon your house and just leave it distressed.