Seek Assistance

• Don't wait until the sheriff shows up to seize the property before you ask for help. Even if you are several months behind on your payments, if your home has not yet been put up for auction, there is still a chance to salvage the situation. You can either approach your bank to negotiate a payment plan, or work with a nonprofit housing counselor that can negotiate with your mortgage company on your behalf. Your lender may also be willing to consider a forbearance or a loan remodification to help you catch up on your mortgage payments.
  
  

Communicate With Your Mortgage Company

• Even if there is nothing your mortgage company can do, you still need to be aware of the foreclosure process so that you know how much time you have left in your home. This helps with planning and gives you an opportunity to make other living arrangements. If you ignore phone calls and letters from your mortgage company, you may come home one day and find a padlock on your door, which means you may be unable to access your personal belongings.
  
  

Request a Short Sale

• Your lender may be willing to allow you to do a short sale on your home. A short sale allows you to sell your home for less that you owe on the home. This means that your lender takes a loss, but at least it isn't a total loss as it would be if your home is foreclosed upon. This also eliminates the foreclosure record on your credit report, which may pose a challenge should you decide to buy again in the near future.
  
  

Obtain Legal Assistance

• Contact your local legal aid office for free legal assistance. A lawyer can at least help you smoothly navigate the legal process associated with foreclosure. If you are in deep financial trouble, a lawyer can help you file bankruptcy and roll the foreclosure into the process, so that you can start over completely. At the very least, a real estate lawyer can properly apprise you of all options available to you in order for you to make the most informed choice.