1.Do Nothing If a homeowner does nothing, they most likely will lose their home at foreclosure auction. Credit reports disclose this damaging information. Loan applications generally ask if the applicant has even been foreclosed upon.

2.Payoff/Refinance Completely paying off the entire loan amount plus any default amount and fees.  Usually this is accomplished through a refinance of the debt. New debt is normally at a higher interest rate and there may be a prepayment penalty. With this option, there should be equity in the home.

3. Reinstatement Paying the entire default amount plus interest, attorney fees, late fees, taxes, missed payments and fees.

4 Loan Modification Utilizing the existing mortgage company to refinance the debt or extend or modify the terms of the loan. To qualify, you must prove to the lender you have fixed the problem that caused the late payment.

5.Forbearance/Mediation The lender may be able to arrange a repayment plan based on the homeowner�s financial situation. The lender may even be able to provide a temporary payment reduction or suspension of payments. Information will be required from the lender to show that you are able to meet the new payment plan requirements.

8.Bankruptcy This option can liquidate debt and/or allow more time. Speak with a qualified Bankruptcy attorney.

Chapter 7: (Liquidation) To completely settle personal debt.

Chapter 13: (Wage Earner Plan) Payments are made toward a plan to pay off debts in 3-years.