Everyone wants to avoid home foreclosure but sadly that is not always possible. We all know how bad the economy is. All you have to do is turn on the television or the radio to hear about the drop in the stock market and the rising rate of unemployment. It is not looking good at all.

There are a lot of people out of work and as a result of that more and more of them are having their homes foreclosed on. The foreclosure rates continue to grow and we all need to be aware of how important it is to avoid mortgage foreclosure.

An Unwanted Fan Club

We all want some degree of popularity, right? We would love to get more mail. What you do not want is a bunch of mail from companies that promise to help you stop the foreclosure process, help you sell your home and protect your credit.

Once your lender files the notice of foreclosure, the whole world can read about it since it will become public record. That means your mailbox is going to be full of notices from companies that are offering to help you avoid home foreclosure.

If you have financial problems and are facing a foreclosure process, the last thing you want is a mailbox full of fake offers to help you stop it. It is nothing more than an inconvenience that reminds you daily of your financial problems and brings you shame when you are already feeling down and afraid. That kind of popularity no one wants to deal with.

Your Credit Will Go Downhill Fast

Foreclosure has a seriously negative affect on your credit score. If you have a foreclosure in your credit history, lenders are going to be very wary of letting you borrow money. A foreclosure on your credit history is as bad as having a bankruptcy on there.

Lenders see the foreclosure or bankruptcy and assume that you are not a responsible person and you will simply give up and just not pay your bills if things get difficult for you. They do not trust that you will pay your obligations if you have been through a foreclosure. You need to stop foreclosure so you do not ruin your credit score.

Refinance to avoid home foreclosure

You may not realize what a great alternative refinancing is to avoid home foreclosure. If you refinance your mortgage, you can often put your finances back in order. Refinancing can help reduce the amount of your mortgage payment so you can start getting back on track with your payments and not worry about getting behind again.

You should know that there are fees that come along with refinancing your mortgage but you have the option of paying them now or adding them to the mortgage. One of the best ways to avoid home foreclosure is to try and refinance your mortgage. Just make sure you get a good deal when you refinance by carefully examining the papers before you sign anything.