If you want to stay in your home but are behind in payments, then you can consider several alternatives that will allow you to stay.  A method that many use when they are behind in mortgage payments is to refinance their home, specifically which allows them to start over with their mortgage.  Understanding how this can stop foreclosure as well as what is needed to ensure that this method works can help you to start over financially while allowing you to stay in your home. 

The only way to refinance your home is to contact your current mortgage company and ask about programs and options for your mortgage.  Most of the refinance programs that are available are focused on taking your current mortgage and moving it through a program that is based on struggling home owners.  The amount you pay per month will be reduced and the time to pay off your home will be increased by the number of years.  You may also have options for interest rate percentages and other fees that cause the monthly payments to move to a higher rate. 

The refinance options that are a part of different mortgage companies require you to send specific information in that will stop foreclosure.  Claiming a specific income level as well as declaring financial struggle is the main component of this, specifically so you can become qualified for a specialized refinancing program.  Typically, the process of approving an altered loan takes between 30 – 90 days.  However, the foreclosure process will be frozen by speaking to your mortgage company about refinancing. 

If the refinance method doesn’t work, then you can still prevent foreclosure and move into an alternative method for paying your home.  A short sale followed by a rent to own agreement will stop foreclosure and is an effective way to stay in your home.  Many individuals look at this as a refinancing option, specifically because the monthly payments and terms for the loan are more flexible and can help those struggling with home ownership to stay in their home.