stopping foreclosure


All around me I see people in my neighborhood and others losing their homes due to the recent swing in the economy. This is bad for everyone because as they foreclose on and loose their homes the value of every home in the neighborhood goes down. For some stopping foreclosure is not an option.
 
It is a shame to loose your home but it seems the banks are not real willing to help the home owner unless they default on their loan. Stopping foreclosure does not seem to interest the banks. It would appear that way from the casual observer but I have learned otherwise through friends who have done short sales and allowed their mortgages to get behind. 

One example is a guy who did not pay his mortgage but the bank did work on stopping foreclosure at the last minute. This person was allowed to do a loan modification and is still living in his home. He avoided short sale and his mortgage payment dropped over nine hundred dollars.

Another person I know let his mortgage go delinquent. But rather than stopping foreclosure he did a short sale and got out from under a huge mortgage debt. He now lives in a rental property and is happy as a lark.