It's not uncommon for people facing foreclosure to find themselves overwhelmed by emotions. Fear, anger, sadness, embarrassment and humiliation are the most common. These emotions can quickly escalate to the point where people become immobilized and incapable of making simple decisions. They lose hope and are unable to see light at the end of the tunnel.



Although many people view foreclosure as complete and utter failure, that is rarely the case. Just look around you. Foreclosure rates are skyrocketing all across the country. If you are facing foreclosure, you certainly aren't alone and it doesn't mean you are a loser.

There's no doubt that foreclosure is stressful. Few people are immune from feeling scared or ashamed. However, the best thing you can do for yourself is develop a positive, proactive mindset and move forward in a direction that can help you change the outcome.

Unless the gavel has been dropped in a courtroom and a Judge proclaims your house is "Foreclosed", at this very moment you still have options. Much depends on what phase of foreclosure you are currently in.

If you've recently fallen behind on your mortgage payments you have many more options than someone who has received an auction notice from the Sheriff's Department. If you've missed a payment, call your lender NOW. They may offer you an option to roll a few payments to the end of the loan. This will depend on your credit worthiness over the term of your loan. If you have missed several payments, the lender may not be as willing to work with you.

The secret to obtaining the help you need is to prepare a repayment offer prior to calling your loan officer. Organize your paperwork. Calculate your income and expenses. Write an explanation of the circumstances that caused you to fall behind on your note payment. Have everything ready and available when you make the call.

Let your loan officer know how much you can pay and on what dates. Be realistic in your offer; otherwise, you will be unable to keep your commitment and the bank won't be as willing to give you a second chance.

If you have been avoiding your Lender's calls and letters, now is the time to stop. Ignoring them will not make them go away and will only worsen your situation. While it can be extremely difficult to pick up the phone and call, you absolutely must do it. There is no way around it unless you want them to literally throw you out of your home.

Even if you have been ignoring your lender, you still have options. Depending on the circumstances your lender might be able to offer solutions to help you avoid foreclosure. These include Mortgage Modifications, Special Forbearance Agreements, Partial Claims and Short Sales.

Borrowers who have FHA-insured loans can obtain free financial counseling and assistance from the Federal Housing Association (FHA). Housing counselors are available to review your current financial situation, determine which options are available, and assist with lender negotiations.

If you have fallen behind on your mortgage because you do not know how to handle your money, consider working with a credit counseling agency. However, use caution when selecting credit counselors and avoid those who charge upfront fees. Be certain to advise your lender that you are working with a credit counseling agency.

Keep in mind that it costs your lender time, money and resources to commence the foreclosure process. If you take the initiative to contact them they will be more willing to work with you, regardless of your situation. When you ignore their calls and letters you are leaving them with no other option but to move forward with foreclosure proceedings.

You may, or may not, be able to save your home from foreclosure. The only way you will know for certain is to contact the bank and negotiate to the best of your ability. Take time to conduct research and familiarize yourself with options available to people facing foreclosure. Talk to professionals who can explain your options and most importantly, never give up.