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Five Ways To Save Your Home From Foreclosure

Updated on July 16, 2010

Home Sweet Home


Guerilla Tactics For Saving Your Home From Foreclosure 


Okay, you know who you are. You are behind on your house payment, the bank is calling you everyday. The mailbox is full of foreclosure notices. I cannot think of anything worse than being forced out of your home, but that is exactly what is happening to millions of Americans every year, and to be honest, there is no real end in sight.


If you think the economy is getting better, then, you probably also believe in Santa Claus, the Tooth Fairy and the Easter Bunny too. While President Obama is working his butt off, the financial monster that has been unleashed is going to take one thing to get us back in the black, and that is time, and probably a lot of it too. Considering the Great Depression lasted for almost a decade and showed no real signs of ending until WW2 when American became the manufacturer of the world.


Unfortunately for us, our manufacturing base is GONE. We can thank our government and big business of sending millions of good paying blue collar jobs overseas. If you are one of those American who lost your job and now you are afraid your house will be next…read on, you might be able to stay in your home after all.



1-      One tactic you should try early on is to call the bank and ask them to renegotiate your loan. There is nothing the bank really cannot do when it comes to a loan, it is completely up to them. The banks have a vested interest in you paying off your home loan. Just be honest, and don’t feel bad that you are in a situation where you cannot make your house payment. Its really not all your fault, especially if you lost your job to the recession. Both you and the bank win when you stay in your home and pay it off, so give them a call TODAY! Like NOW!

2-      I heard about this a while back on a news program. Many times the mortgage on your home has been sold and re-sold. If the person who now holds your mortgage cannot produce the original paperwork of your loan, that house then becomes yours legally, free and clear! The good news is that many of the mortgage holders cannot produce that original paper work! If you are having a problem with making your house payments, you need to check into this right now. You just might be able to get your house free and clear without making even another penny in payments!

3-      Most American have a house bigger than they need. Consider renting out your basement, upstairs or spare rooms. In this economy, lots of people are looking for a cheaper place to live, lots of people have bad credit and cannot get into an apartment. You may also want to call your local social services and tell them you have a room or basement or upstairs to rent out to the right people. Because these people are going to be living in your living space some of the time, you need to be picky and get a good fit. Simply explain this beforehand. I have seen this arrangement work out quite well for all parties involved. The main thing is to lay out the ground rules ahead of time, and make sure you get renters with a lifestyle like your own. This can work, it just takes some planning.

4-      Consider merging two families into one, and live in one house, use just one car. This could work well with family members or people who are good friends. Once again, get everything down in black and white and make sure everyone understands the arrangement.  I have one friend whose grandparents moved into their home, so that the house did not go into foreclosure. Not only has the grandmother taken over child care, saving a large amount of money, Gramps fixed up the home that would have taken thousands of dollars if they had to hire a contractor. Plus, they have only one vehicle, and saved even more money. Even when times get better, they plan to continue this living arrangement. Now the house is paid off completely, and everyone is very happy with the deal.

5-      This next suggestion is a bit radical, but desperate times call for desperate measures…so here it goes!  For many people, a big expense is food. Its something that costs a lot of money, even if you scrape to get by. Did you know that food prices when up faster than anything else other than gas? Is it no wonder families can no longer make ends meet? Many people do not realize there is a free source of food in their community that goes to waste each and every day! If you guessed this free food is in the dumpsters of your local fast food restaurants, you guessed right! There is nothing wrong with the food they throw out, they just have a policy to get rid of it after so many hours. Not because it is spoiled in any way or because there is anything at all wrong with it, but because people are fussy when they are paying for it. The best places for dumpster diving is behind Pizza Hut or Mc Donalds. Burger King is another good choice. When things get busy, they make up extra food in hopes the customers will be ordering it. Sometimes they make up too much food, and it can only sit under the heat lamps for so long. In big cities, most homeless people already have a monopoly on the dumpsters that have the good stuff , so this may not work out for you if you live in a big city, but if you are living in a smaller town, most of this food is just going to waste on a daily basis and there is nothing wrong with it at all. I have personally known people who were dumpster divers! You would never know to look at them that they regularly eat out of dumpsters. I will warn you, be very careful with what you eat out of dumpsters! And, never, ever feed a child out of a dumpster! If it looks spoiled in any way, throw it out. And, legally, I am not advocating this practice, I am merely telling you about other people who are doing this. If you do become a dumpster diver yourself, you just might save enough money on your food bill that you can make your house payment. So, indirectly this becomes another way to save your home during dire times, and just think of it this way, think of the cool stories you will have to tell your grandchildren one day. “ During the second great depression, we were so poor, we had to go dumpster diving to save the house we are living in right now.”  You get the picture!


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    • profile image

      dreamreachout 7 years ago

      Voting this up again!!

    • magnoliazz profile image

      magnoliazz 7 years ago from Wisconsin

      Thank you Lady_E for your nice comment.

      I wish our government would do something as practical as the UK. The average taxpayer never gets much help.

      No, this is not my home, but I wish it were! I love English cottages! I wish they allowed thatched roofs over here.

    • Lady_E profile image

      Elena 7 years ago from London, UK

      Very useful tips - A lot of people are afraid, bury their head in the sand and search the internet for help. I hope they find this Hub.

      We are lucky in the UK as the government introduced a Benefit last year. (SMI)Anyone out of work, would have there Mortgage paid by the government for a short period. Prior to that hundreds of homes were being repossessed (foreclosed).

      Lovely of you to share this info. Very practical.

      Ps. Is that photo your home? It's gorgeous.

    • magnoliazz profile image

      magnoliazz 7 years ago from Wisconsin

      LOL James..yes, dumpster diving is a bit out there. And dangerous too. A friend of a friend dived into a dumpster head first....(we think he was probably drunk), and ended up in the hospital because the dumpter was empty and there was nothing there to cushion his fall. He was okay th enext day, but he could have broke his neck!

      I think I will have to publish a hub on the fine art of dumpster diving!

    • James A Watkins profile image

      James A Watkins 7 years ago from Chicago

      This is an excellent article with sound advice. Except for # 5. I'm not too sure about that idea. It is radical indeed. :D

    • magnoliazz profile image

      magnoliazz 7 years ago from Wisconsin

      Dream are so right! That's what we call a work ethic, if you don't work, you don't eat. The sooner you learn that the better off you are. I spent many of my childhood years on my grandparent's farm, and from the age of 3 I had chores to do. To some people they would think this is mean, but it is the greatest love of all to teach your kids to be good workers, their lives will be better for it. Besides, life is work, there is no way to get around it. You have no easy job, trying to get people to work. Cherish your good workers, they are like gold.

      Lamme,,,thank you. I hope this helps so people out of a desperate situation. Our banking system is corrupt and the American people need to do something about it!

    • Lamme profile image

      Lamme 7 years ago

      Excellent hub. Thanks for sharing this information, it's something so many people need to read!

    • profile image

      dreamreachout 7 years ago

      Your last exclaimation is the biggest truth!! Union protects the bad workers and thats been a bane in India too, specially in my state!! What surprises me most is that most of the time the attitude of the unions are such that protection of workers is greater than the work while we should always believe that work is the greatest!!

    • magnoliazz profile image

      magnoliazz 7 years ago from Wisconsin

      Dreamreachout- You have a point there. Things do go in cycles, its just the nature of things.

      In my younger days, for college money, I went and worked in a factory that made auto parts. It was piece work and mostly women worked there. Things were set up so that we could make extra money if we produced more parts. I never saw people work so hard! These women were not happy unless they made a lot of extra bonus every day.

      Most of these women had been working there for 20-30 years, and they loved their job.

      But there were younger girls there who were very lazy too, they would go to the bathroom and come back a half hour later. If you own a factory, you probably know all about that. I can only tell you to hire older people and then give them an extra incentive to work.

      We had to make a certain amount of parts every hour, that was called our rate. These women could make double the parts per hour and when they did that, they were awarded extra money.

      We had a union too, but that is not always the best thing. It protects the bad workers.

    • profile image

      dreamreachout 7 years ago

      Everything in the world is cyclic!! All too good and all too bad!! Soviet Union failed possibly because they had too many workers right and here in India we have seen that once workers are given too many rights and privilages, work stops, production is less and there is total industrial chaos!! Its difficult to say whats good and whats bad!!

    • magnoliazz profile image

      magnoliazz 7 years ago from Wisconsin

      2% of the people have 98% of the money!

      There is a worldwide network of the very rich who are ripping off the rest of us. Some people call them the New World Order, others just call them the Elite...whatever you call them, they are bad news.

      The good news is...more and more Americans are waking up and finding out that we have a bunch of crooks in Washington and things have got to change.

      The banks in this country should be taken over by the government, because they lie, cheat and steal from us all. Don't tell me they need to be bailed out when they are charging 35 % interest on credit cards. When we put money in a savings account we don't even get .5 % interest on our money. Its a joke!

      The American people are not going to put up with this forever, things will get ugly, very, very ugly! A few people on the top getting everything is not a democracy and something needs to be done.

      I feel bad for the workers of India and China, I know they have it worse than I can even imagine. Its not fair and I hope that one day the workers and poor of the world can unite and get a fair shake.

    • profile image

      dreamreachout 7 years ago

      Hey, the jobs have moved here to India and China buts its the same story here!! When recession pounds everyone is hit!! Good hub but still people at large are helpless!!

    • magnoliazz profile image

      magnoliazz 7 years ago from Wisconsin

      Websclub...thank you so much!

    • websclubs profile image

      websclubs 7 years ago

      Saving Your Home From Foreclosure-

      These hubs are timeless, Thank you very much for such wonderful information.

      Credit cards companies


      Financial Collapse

      US Economy

      Magnoliazz, Enjoyed reading these hubs you gave something useful.

    • Ben Zoltak profile image

      Ben Zoltak 8 years ago from Lake Mills, Jefferson County, Wisconsin USA

      Great ways to stop a foreclosure. I used to serve legal papers, foreclosures included, nothing sadder. I like the pic of the house too, I wish I lived on a tree farm like you, that would be pretty sweet. I try to go hiking on the Glacial Drumlin trail when I can, that's about as close to the trees as I can get!

    • profile image

      Martin V 8 years ago

      great hub.

    • sibajar profile image

      sibajar 8 years ago

      Very sage and relevant advice. Many people could use this advice in helping them keep their homes.

    • JBeadle profile image

      JBeadle 8 years ago from Midwest

      Thanks for those tips. I hope not to use them but no job thus far is on the horizon! I was a tad horrified at #5 but that too can be a reality. There is no dishonor in survival to me, even if it means to get McDonald's hand me downs. What is going on now in America seems unreal and so under reported. We need to help each other out more. Probably the poor helping the poor. Stick together. I had an odd realization when watching Scrooge this holiday (Albert Finney version) that the people who gave beggars money were other beggars while the rich sneared. It feels a bit that way now. I tip twice as big as I used to when we eat out and I can't afford that but I need some of that back at me in the coming years. I really hope this thing starts turning around. But you have some sound advice in your hubs if it does not. I'm so glad you seem to be on your feet again. You seem to have a very good heart.

    • magnoliazz profile image

      magnoliazz 8 years ago from Wisconsin

      Veronica, yes I agree with you, it is sad, and it certainly is not the America I grew up in. Hopefully, these hard times will teach all of us some lessons. With all that money that went for bailouts, it would have been better to pay off people's mortgages instead, especially those people that have been out of work for a long time through no fault of their own. That is what makes me angry with our government. They care about the big banks and big business, but what help does the American tax payer get when he is in touble? NONE, the guy who has to pay for everyone else's bailout gets a big fat zero from our government. It's just wrong and I feel very bad for those people, especially the families with small children, it tugs at my heart, no child should be homeless, not ever.

    • profile image

      Veronica allen 8 years ago

      Great tips! It's so sad though that so many have to go to these extreme measures. But the way things are going, more and more of us may just have to take these measures to keep a roof over our heads.