Three out of four borrowers who enter the foreclosure process leave it through something other than a forced foreclosure sale or auction. They bring their loans up to date through payment arrangements worked out with the lien holders; they refinance their homes, or they sell them to stop foreclosure.

Main Causes of Foreclosure

Job loss - The Midwest has seen an increase in foreclosures in recent years due to the loss of manufacturing jobs; hardest hit are Michigan, Indiana and Ohio.

Natural disasters - Homeowners are still feeling the effects of Hurricane Katrina, which has contributed to rising foreclosure rates in Mississippi and Louisiana.

Adjustable-rate mortgages - Borrowers are getting behind on their adjustable-rate subprime mortgages. These high-interest loans account for about 4% of all mortgages. They start with low rates that can climb in a few years to where the payments are beyond the borrowers means.

Ways to Stop Foreclosure

Some owners are able to refinance their mortgages to catch up on their delinquent payments. Rarely has there been such an advantageous time to refinance into a 30-year fixed-rate mortgage if you have an adjustable-rate loan, says Jeanne Sahadi, CNNMoney.com senior writer. The average rate on the 30-year loan has fallen more than three-quarters of a percentage point since July, and it is near its lowest level since October 2005.

Some lenders will let borrowers add the payments they have missed onto the end of the mortgage to avoid foreclosure.

Stopping foreclosure proceedings is not easy but it can be done. Community groups and nonprofit housing counselors can serve as mediators between delinquent borrowers and anxious creditors.

One thing you can do today is get a free refinancing quote at Easy Mortgage Refinancing. Your information is completely secure and will only be used to prepare your complimentary quote.