If buying a home is the American dream, is foreclosure the nightmare? For too many of us it has been...but it doesn't need to be. By using the tips I am about to outline I hope that you or someone close to you can avoid an, often times, painful foreclosure.

Have you noticed that you've been finding it difficult, or maybe even impossible, to keep up with your mortgage payments? If so, contact your lender immediately! Lenders don't want your home to go into foreclosure any more then you do and they have options to help you keep it. The sooner you have contact with your lender on this issue the better. If you let this go on for too long you may have legal action taken against you.

Know your loan agreement. If you haven't done this already, go read it! Find out exactly what action may be taken against you if you default on your mortgage payments. This is very important, especially if you feel like you might be in default.

Know the California Foreclosure laws and time frames. Generally foreclosures are handled out of court in this state and take about four months to complete. Foreclosures that do occur in court only happen when a lender desires a deficiency judgment (deficiency judgments occur when the lender wants more money from you then the house sells for at auction). To learn more about the laws and time frames you can visit the websites RealtyTrac.com or Foreclosures.com just to name a couple.

If you just don't feel comfortable talking directly to your lender, call a HUD approved housing counselor. They can help ease your tension by acting as a middle man between you and your lender. They also have a lot of great options that they can discuss with you for protecting your credit and getting you into programs that provide financial and legal assistance. Don't confuse HUD approved housing counselors with foreclosure prevention companies. Foreclosure prevention companies are quite costly.

Prioritize your debts. Food and shelter are generally high on people's lists of priorities. If your not noticing that your mortgage payments come before vacations, entertainment, or eating out, perhaps your problem can be solved easily buy making your mortgage payment the number one prioritiy.

In closing, if your having trouble keeping up with your mortgage payments, take some action. If you ignore the problem it will get worse. You have more options if you act quickly.

                                                                     Julie McLaughlin

                                                                  Prudential CA, Realtor

                                                                     (530) 879-4507

                                                                www.HousesInChico.com