The recent run up in home prices and rates of home ownership has many positive benefits for the country, its citizens and the economy, but unfortunately there is a dark side to these ever rising home prices. Many home buyers have been priced out of the market by those very same high prices, and a variety of creative financing options, such as interest only mortgages, no money down loans and negative amortization strategies, have been used to get homeowners into homes.

As the rise in home prices has leveled off and even fallen in some cases, many of these same homeowners have found themselves owing more than their home is worth, and owing more than they can afford to pay on a monthly basis. This is especially true of those who took out adjustable rate mortgages with artificially low teaser rates. As those rates adjust to market rates, these homeowners may find themselves facing steep increases in mortgage payments, and in some cases these homeowners may find themselves looking for ways to stop foreclosure proceedings.

If you are wondering how to stop foreclosure and asking yourself "how can I save my home" this article is for you. There are some strategies homeowners can use to stave off and stop foreclosure proceedings, but it is important to become educated and to act before those proceedings have gone past the point of no return.

Strategies to consider include:

A loan modification can be a good way to stop foreclosure. Essentially, a loan modification is an agreement between the lender and the borrower to change the terms of the loan. A typical loan modification will add any missed mortgage payments, along with any required insurance payments and accrued interest, to the unpaid balance on the mortgage. Those homeowners who qualify for such a program may be able to extend the repayment of their past due payments over the remainder of the loan term.

With a "forbearance" option, the lender agrees to let the homeowner delay payments due for a short period of time. This type of arrangement is typically used in specific circumstances, such as temporary unemployment or an unexpected medical problem. A forbearance does not mean that the lender forgives the debt, as the payment must still be made in full at a later date. Even so, this type of arrangement can help to stave off foreclosure proceedings.

Those seeking to use such a forbearance to stop foreclosure will be required to sign a forbearance agreement which states that the lender will require the homeowner to pay the amount owed at a later date.

Many of the most serious problems which can lead to foreclosure can be traced back to burdensome mortgages. As the boom in home prices continued, many mortgage lenders came up with increasingly complex and convoluted loans, and this unfortunately has led to many homeowners looking for a way to stop foreclosure.

In the case of an adjustable rate mortgage resetting its rate, or an interest only mortgage reverting to ordinary interest and principal payments, it may be possible to stop foreclosure through a loan refinance. Getting a better loan, with more reasonable and affordable payment terms, is one of the best ways to stop foreclosure in its tracks. The key, however, is to begin exploring this alternative before a crisis has occurred.

Those homeowners attempting to stop foreclosure before it gets started may have the option of doing a "short sale", in which the home is sold before any black marks can tarnish their credit rating. This option is a particularly valuable one for those homeowners who are unable to make their mortgage payments.

As the name implies, a deed in lieu of foreclosure means that the lender takes the deed to the property instead of foreclosing on the property in question. While the deed in lieu of foreclosure is a viable way to stop foreclosure, it does not solve the "save my home" question, as the home buyer in question is simply handing the property over to the lender and walking away from any interest in the property.