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The first, most important step when trying to prevent foreclosure is to pay active, close attention to your situation. Ignoring lenders’ notices will only hurt you. Instead, take a proactive approach:

Take Your Finances into Account

Before reviewing anything else as you work to prevent foreclosure, you should get a clear picture of your personal finances within the context of your mortgage:

• Understand your income level and any reasons you are in default
• Measure the amount of time you have available to you, and the time it will take for you to earn the money needed
• Prepare a budget; look for places to cut back
• Look for ways to earn extra income
• Start saving

Compare Foreclosure Solutions and Outcomes

After evaluating your finances, you can consider the following solutions when planning to prevent foreclosure:

• Repayment plans
• Forbearance
• Modification
• Short sales
• Preforeclosure sales
• Deed in lieu of foreclosure
• Mortgage assumptions
• Bankruptcy
• Litigation

Find Help Along the Way

Because working to prevent foreclosure can be complicated, it’s best to seek professional foreclosure help while planning. Just make sure you have the budget for it, you find an agency or professional that fits your needs and situation, and that you don’t fall prey to a foreclosure rescue scam.

The U.S. Department of Housing and Urban Development (HUD) is a great resource for homeowners working to prevent foreclosure, relocate, get rental assistance, and more.

Get answers, and ask more questions, about how to prevent foreclosure at LegalHelpForum.com.