If you fall behind on your home loan, you will quickly learn that your options are limited. The more behind you get, the less options you have. Here are 4 suggestions to dealing with a potential foreclosure.

1) Get help NOW, not tomorrow, not next Tuesday, not after the lender calls me back....NOW. From who?

• Contact a HUD-approved housing counseling agency. Call (800) 569-4287 or TDD (800) 877-8339 for the housing counseling agency nearest you. These agencies are valuable resources. They frequently have information on services and programs offered by Government agencies as well as private and community organizations that could help you. The housing counseling agency may also offer credit counseling. These services are usually free of charge.
• Contact the state agency responsible for housing in your state. Ask them of any organizations sponsored by the state or run by the state which can assist you in this issue. Many states are funding programs to help homeowners by advocating on their behalf with lenders, providing one-time grants for funds to catch up past-due payments, etc.

2) Avoid being scammed by those anxious to take advantage of you in your circumstance either by offering to buy your home quickly, make payments on your behalf, etc. How to know if you are being scammed?

• Phony counseling agencies. Some groups calling themselves "counseling agencies" may approach you and offer to perform certain services for a fee. These could well be services you could do for yourself for free, such as negotiating a new payment plan with your lender, or pursuing a pre-foreclosure sale. If you have any doubt about paying for such services, call a HUD-approved housing counseling agency at (800) 569-4287 or TDD (800) 877-8339. Do this before you pay anyone or sign anything.
• Don't sign any papers you don't fully understand.
• If you're selling the house yourself to avoid foreclosure, check to see if there are any complaints against the prospective buyer. You can contact your state's Attorney General, the State Real Estate Commission, or the local District Attorney's Consumer Fraud Unit for this type of information.

3) Talk to a bankruptcy attorney. Perhaps bankruptcy is NOT an appropriate choice for you but you should seek out an attorney and get advice. A bankruptcy may delay a foreclosure for a period of time but won't "solve" the problem.

4) Ask for help FROM EVERYBODY. The earlier you ask for help, the less help you need. If you get 2 payments behind on your home loan, there is still time for a church friend, family member, etc. to help you catch-up. Asking for help early makes it more likely help can...well...HELP. Waiting until the house is going to be auctioned on the courthouse steps is simply too late for most people to get behind you and your circumstances and provide you financial help.

Lenders do not want your home. Foreclosure is expensive and unprofitable for a lender. They will often work with homeowner's who communicate with them, who do what they say they will do, and who present some kind of plan for getting back on track.

Ken Stampe