Did you know that 1 out of 10 homeowners are facing foreclosure? This may be your next door neighbor, your co-worker, your bowling buddy, the person you sit next to in church every week, it may even be you.

Even sadder, 7 out of 10 will go through the process alone. That is, they will have given up and will let whatever happens happens.

• They don’t know that their credit score will drop almost 350.
• They don’t know that a foreclosure will stay on their credit for 10 years, and I have heard recently indefinitely.
• As renters, a larger deposit may be required.
• Any future home or car loans will only be obtained by larger interest rate, which means larger payments for a smaller home.
• They don’t realize that a foreclosure could jeopardize their employment - present and future.
• They think that once they have been foreclosed on that they can move on without any other repercussions only to have a deficiency judgment(s) show up sometimes years later.

This is disheartening because there are so many other (less damaging) options available other than letting the home go through foreclosure.

Signs to look out for:

• * Discord in the home; more arguing
• * Piles of unopened mail.
• * Someone has lost their job or hours have decreased.
• * There was a temporary or on-going illness which has lead to loss of income because they can't work or they have to stay home and take care of the person with the illness.
• * An overwhelming amount of medical bills.
• * When you are at their home, the phone rings constantly and they do not acknowledge it.
• * They start spending money more liberally all of a sudden (no longer making mortgage payments).
• * They may flat out tell you "the bank is taking my house".
• * Out of the blue moved, just left the home.
• * Depression, hopeless outlook on life.
• * Isolated.

There are other signs of a homeowner in distress but these are the most common.

Things you can do to help:

• * Be there; listen to what they are saying and most importantly what they are not saying.
• * People who are going through this are embarrassed and feel ashamed; being sensitive to that and encouraging them can help them get through another day.
• * Let them know that they are not alone. This economic crisis has touched more people than the great depression. There are no income or status limits. No one is exempt.
• * Let them know they can recover from this with the right help.
• * If something seems too good to be true it usually is. Don't be afraid to check or have them check into companies or individuals who claim to have the “get out of jail free” card. They tend to leave people in worse situations.
• * Don’t judge, like I said earlier they are already beating themselves up, whether they got themselves in the situation by not being wise or life just happened to them. They are drowning; throw them a rope and not an anvil.
• * Don’t encourage finger pointing; “that bank did this...and if the bank would have…” You will put them in a mindset that the bank is the enemy. The bank can be the very one who could release them from this situation if handled correctly.
• * Time is of the essence, once they miss their first mortgage payment (or think they will) the clock towards foreclosure starts ticking. They must take action now!
• * Direct them to an expert. An accountant and tax adviser is also good to have on hand during these times. Someone who has skills in helping homeowners in distressed situations. There are Realtor's who have successfully navigated homeowners out of these situations. These Realtor's are trained and know how to strategically market and sell a home and know how to negotiate an outcome that everyone can live with.