I have been buying foreclosure properties directly from the owner for over ten years now and I always see some of the same mistakes made. Foreclosure is such a heavy, embarrassing burden for so many families that sometimes it is hard to stay rational. Here are five key things I've learned to help homeowners who are already in trouble, to avoid foreclosure.

1.  Keep in constant touch with your lender.

Let them know why you are behind on your payments and what you are trying to do to solve the problem (get another job, borrow from family, sell the home.) Continually ask them for time and their patience so that you can work out the problem.

2.  Homeownership comes first.

It is one of the most important aspects of your credit profile. Pay your home before you pay other secured and unsecured debts like furniture loans, credit cards, memberships. These other debts take second seat to your home. Don't let it fall behind due to keeping up the others.

3.  Consider selling and moving or selling and renting back.

If you owe less than the house is worth then you cam offer it at a discount to attract a buyer or investor faster. Many investors will allow you to rent the home back for a period of time to help you with the transistion. You can list your home for FREE and attract qualified investors right here on www.Propertyhookup.com

http://www.propertyhookup.com/members/m_seller_registration.php

If you owe more than the home is worth then talk to a real estate agent that has experience working with short sales. Read these articles on finding an agent and short sales:

http://www.propertyhookup.com/article/17/How_to_Hire_the_Right_Real_Estate_Agent.html

http://www.propertyhookup.com/article/19/How_to_do_a_Short_Sale_Foreclosure.html

4.  Work with your lender's home retention department and file for thier hardship program.

If you feel that your financial problems are short term, then you can often renegotiate the debt and wrap the back payments into your future payments. The bank wants to avoid the foreclosure almost as much as you do. It effects their ability to make more loans and do more business. It is a bad mark on their lending history that they want to avoid. Work with them from day one and it will buy you the time that you need to find a solution.

5.  Ask your lender for a deed in leau of foreclosure.

This basically means that you are giving the home back voluntarily to the lender and is a lighter mark on your credit than a foreclosure.

Remember that life goes on and your credit can be repaired. But in the meantime, look ahead and deal with your problems straight on. That is always the best solution for you, your family, and your wallet.