When It Makes Sense to Fight Foreclosure to Keep Your House
You should try to avoid foreclosure and fight to keep your home only if you have some equity in your house or can afford to continue making your monthly mortgage payment--ideally, both.
You Have at Least Some Equity in Your House
If you have equity in your house, and are facing foreclosure because of missed payments or a rapid increase in your mortgage interest rate, it makes sense to hold on to your house if for no other reason than to protect your equity. Needless to say, the more equity you have, the stronger this reasoning.
You Can Afford Future Monthly Loan Payments
If you have some equity in your house and think you can afford future monthly mortgage payments, it’s worth it to try to hang on to your house.
If you don’t think you can afford your monthly payments, you can try to make them affordable by freeing up more of your income (by filing for Chapter 13 or Chapter 7 bankruptcy; see our article on how bankruptcy can help with your foreclosure) or changing the amount of the payments themselves (by modifying the terms of your mortgage; see our article on modifying your mortgage under the Making Home Affordable program).