This year the rate of homes going into foreclosure have risen to an all time high if you are among the hundreds of thousands of homeowners that will go through this unfortunate stage in life there are things you should do to save your house your family or at least your credit history so you can start over, first of all if you know that you cannot keep up with the payments due to a layoff, medical reasons, higher interest payments due to adjusting rates etc. you have to move fast.
If you can't pay, call your lender as soon as you sense the problem. and explain the situation ask to work out a repayment plan that you can manage.
ANSWER any mail from your lender, early letters can offer options to help to bring your loan current an avoid foreclosure saying you didn't check your mail won't help you in court, build a file with contact names of who you talked to when what time and date, department, pay stubs layoff notices, medical bills and any other papers that document income or temporary lack of income, make copies of all documents you provide to the lender while making your case, in the rush papers can get lost. DEAL with the loss mitigation department that's where you will find people with the power to help you.ASK the lender to wave pre-payment penalties. some will consider doing so if it results in the loan being payed off. PUT THE HOUSE UP FOR SALE and find your self a good Realtor to work with now is not the time to mess around trying to sell by owner. ask the lender to take a short sale don't forget to add the words " WITHOUT RECOURSE" if you forget the lender will take you back to court to collect the rest of the money and please, please,please do not work with people that call themselves investors and want to help you I am sure there are many honest investors out there but also there are as many dishonest people that will try to take advantage of your desperate situation and will only make matters worse do not work with anyone who ask you to sign a "quitclaim deed" such a document hands over ownership of your home.
DON'T FORGET there is life after foreclosure!!!