There are now hundreds of thousands of families all across America facing foreclosure because they simply cannot afford their mortgage payments, or they owe far more than their house is currently worth. To make matters even worse, the Mortgage Bankers Association reports that approximately 50% of home owners who do lose their homes to foreclosure have never once contacted their lender.  That number was amazing to me, so I wanted to get some information out there to help homeowners avoid that loss. 

Ten tips to avoiding foreclosure:

1. Don’t ignore the problem, the longer you don’t do something the harder it is to recover.
   
2. Contact your lender as soon as you realize you  have a problem.  The lender does not want your house, they have options to help you through tough times.
   
3. Open and Respond to all mail from the lender.  Early on they can help, but the later you wait the more likely to find legal action  in the mailings.
   
4. Know your  mortgage rights.  Read over your papers from the lender.
   
5. Understand foreclosure prevention options. (also called loss mitigation) 
   
6. Contact a HUD approved  housing councilor.  Housing counselors can help you understand the law and your options, help with your finances and negotiations in you need.
   
7. Prioritize your spending.  After healthcare your house should be first priority.  Think of ways to trim the budget down and cut the fluff.
   
8. Use your assets.  Money or items you have been holding for a rainy day, this is that rainstorm.  Use it.
   
9. Avoid Foreclosure prevention companies.   Don’t pay a company large fees that may or may not be a legitimate business to help, use that money on the mortgage and find a HUD approved councilor that provide those services for free. 
   
10. Don’t lose your home to foreclosure recovery scams!  If they claim they can stop procedures immediately by signing letting them act on your behalf run the other way!   You could end up a renter in your own home.
    

If you or anyone you know my be headed towards foreclosure you do have options and there are people who want to help.  hopenow.com is a wonderful resource or the place I found these tips: www.hud.gov/foreclosure are great places to start.