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The rot continues in foreclosure with insiders not expecting a turnaround anytime soon. Hundreds of thousands of ex-homeowners today are foreclosure casualties of the current real-estate meltdown. Some had not resisted but the majority did try but failed to stop foreclosure because the odds were stacked against them. Things are different today and there is every chance that a foreclosure can be averted.

It is nevertheless a daunting task to stop a foreclosure in the wake of the housing market instability and credit squeeze. That is why the whole exercise must start with a concerted evaluation of the entire financial situation of the threatened homeowner. It may even turn out to be more desirable to forgo the subject property. For or against foreclosure, it is critical that you come out of it in the best possible terms as it will have undeniable bearing on your financial standing thereon.

This is a big decision and should never be rushed into although a foreclosure situation is really always a pressing one. More and more options and breaks are brought to the table these days, both by the regulatory authorities and lending institutions and the affected homeowner would do well to capitalize on them. Examples of potentially feasible avenues are refinancing, partial claim, forbearance, loan modification, disaster assistance, deed in lieu, pre-foreclosure and short sale.

Once the decision to stop a foreclosure is taken, you can’t get into action swift enough. This is because it becomes a race against time with immediate effect but take heed not to overreact into a panic. There are basically two ways of handling it, namely engaging a turnkey third-party for it or going it yourself. That’s a key decision in itself as the former will incur further expenses but the latter is going to be challenging both in spirit and energy.

It’s quite common for affected homeowners to adopt a mixture of both approaches. In any case, it should be fundamentally along the line of the following steps: -The homeowner occupies the central role and calls the shots. -Take precautions against scams and predatory lenders. -Explore all available options even if chances of eligibility appear remote. -Remain targeted and single-minded.

This is undoubtedly a mammoth task but the internet and other agencies are well-stocked with information resource. Numerous guides and handbooks on how to stop foreclosure have also mushroomed all over the shop.

We’re far from out of the woods but there are signs of things going on the mend. Both consumer confidence (Conference Board, June 2008) and home prices (S&P/Case-Shiller, May 2008) registered month-on-month improvement in their respective latest reports. Topping it off, the Housing and Economic Recovery Act 2008 has been passed. It will help 400,000 homeowners avert foreclosure with a $3.9 billion bill and $300 billion in federal guarantees.