Financial assistance programs may prevent foreclosure.

If you want to stay in your home but are facing selling a home in foreclosure, financial assistance programs can help. In foreclosure situations, familiarizing yourself with your choices is the first step to salvaging your credit.

If you can't make your current mortgage payments and want to avoid foreclosure, your home selling financing options may include refinancing your home or modifying your current loan. Refinancing your home may allow you to get a new mortgage with better terms, such as a lower interest rate or cheaper payments, making your current housing situation more affordable. When you refinance, you may be able to get your new loan through your current lender, or you can talk to other companies and banks to see if one offers more competitive terms.

A loan modification differs from refinancing because it deals only with your current mortgage and lender. In this process, you can try to work out an agreement with your lender to alter one or more of your loan terms with the goal of lowering your monthly payments.

Another option to avoid foreclosure-home selling is a partial claim. In this scenario, the homeowner must meet certain criteria, such as showing that the reason for the default has been overcome, and must come up with part of the money to repay his debt. The lender then adds part of the default balance to the original loan, and the debt is no longer considered delinquent. Partial claims are done through HUD, so check with your local office to see if this may be an option for you.

If you are unable to refinance your home or modify your current mortgage, you may be faced with the possibility of having to choose from among the foreclosure home selling financing options. Foreclosure home sales financial assistance may be available through a deed-in-lieu (DIL) program, also known as the Mortgage Release program. To put it basically, this option allows you to transfer the mortgage back to the lender and clear your debt. A DIL may offer flexible options for you to stay in the house for a short period of time or lease the house for a year. You may also be able to take advantage of financial assistance to help you relocate. All homeowners may not qualify, but you may receive up to $3,000 to help you get back on your feet.

Foreclosure home selling situations can be stressful if financing options are not available. RealtyNow can help you find a real estate professional who will make the process as easy as possible. To look at listings of foreclosed homes near you, enter a zip-code above.