Foreclosure is the process by which a bank repossesses and resells your home after you stop making mortgage payments. In many cases, people face foreclosure because their mortgage rates suddenly increase or because they lose their job, making it hard to make monthly payments. Stopping foreclosure really begins as soon as you get a mortgage. You should shop around for the most affordable mortgage you can find and if a sudden increase in mortgage rates might affect your ability to repay, consider getting a fixed rate mortgage.
Another thing you can do to prevent foreclosure is to put down a larger down payment. The larger your down payment, the more equity you have in your home. This way, if you suddenly need to refinance it will be easier to do so. In addition to a larger down payment, make sure that you set aside at least three or even six months of income in an emergency fund. This can be vital in saving your home in an emergency. If you suddenly lose your job or cannot work, you can still make mortgage payments out of your emergency fund.