Maybe you have found yourself in the middle of an unforeseen hardship that has placed you in a situation where you are being faced with foreclosure. Possibly you have lost your job, your mortgage payments have increased, you have been hit with unexpected medical bills or you have recently been divorced. Whatever the reason, it has put you in a position where you are behind on your mortgage and you could possibly lose your home. If you have found yourself in this situation, you must act immediately to avoid foreclosure and save your credit.

There are several possible options that are available to you:

• Budget Analysis: A household budget analysis can be completed to cut excess spending. It is extremely important to develop and stick to a budget no matter if your are in a difficult situation or if you are financially stable. Sell off existing items of value if your situation is temporary and apply this additional money to your mortgage payment.
  
  
• Loan Modification: A Loan Modification is a permanent change in one or more of the terms of a mortgagor's loan, allows the loan to be reinstated, and results in a payment the mortgagor can afford. This can be done by contacting your mortgage company and requesting a loan modification package. Not all borrowers will qualify for a modification.
  
  
• Short Sale: Considered to be one of the best options available to avoid foreclosure, the short sale has numerous advantages for homeowners as well as lenders. With a Short Sale, the lender agrees to accept less than what is actually owed on the property. This relieves the home owner of debt and reduces the expense and time involved in foreclosure proceedings for the lender. A short sale in the majority of cases will do less damage to one's credit than a foreclosure.