If a homeowner is unable to make a mortgage payment, these helpful steps will get you on the right track! 

NEVER... NEVER Ignore The Problem  The more behind in payments a homeowner becomes, the harder to reinstate the mortgage and more likely they will lose the home.  Most lenders are willing to explore options, even if there are no guarantees.

Contact The Lender As Soon As There Is A Payment Problem   If a homeowner does not contact their lender, the lender will try to contact the homeowner by mail and phone soon after a payment has been missed.

Respond To All Mail From Your Lender   The first notice a homeowner will receive will offer good information and foreclosure prevention options which may help them overcome financial problems.  Your failure to open your lenders mail will not be an excuse in a forecloure court action and you may miss the notice of pending legal action by not opening your mail. 

Know Your Mortgage Rights   Find your loan documents and read them so that you are aware of the steps your lender may take if you can not make the payments.  Learn about foreclosure laws and timeframes in your state.  

Review And Prioritize Spending    Review your finances and see where spending can be cut in order to make the mortgage payment. Eliminate optional expenses like cable TV, entertainment, dining out and any memberships. Pay minimum credit card amounts. 

Some creditors offer extended payment plans so that if a customer is having trouble paying their bills, they will accept partial payments over an extended period of time. 

Use Your Assets   Do you have a second car, jewelry or life insurance policy that could be sold for cash?  It maybe hard to realize the necessity of selling such items, don't hesitate if it will bring your mortgage payments up to date and reinstate the loan.
Get a second job, to bring in additional income.  Even if these efforts do no increase cash flow, they will however demonstrate to the lender you are willing to make sacrifices to keep your home. 

AVOID...AVOID Foreclosure Scams   Homeowners about to face foreclosure are vulnerable.  Avoid any firm that claims they can stop a foreclosure immediately.  (they commonly have you sign a document appointing them to act on your behalf sometimes homeowners have signed the title of the home over to these scam artists and become renters in their own homes.  Other common scams include: buy back schemes, equity buy outs and paying to keep your credit clean.  

AVOID Forclosure Prevention Companies   While these may be legitimate businesses, they charge hefty fees, often a few months mortgage payments for information and services that many lender and federal housing counselors provide at no charge--use that money instead to pay the mortgage.

FINALLY   You may wish to consider selling your home pre foreclosure if you the home owner has fallen behind in payments but have yet to go in to foreclosure.  Sometimes, these homes are sold before the foreclosure can be completed. This is commonly known as a short sale.   Why a short sale?   Because the proceeds from the sale aren't enough to repay the loan.