The possibility of losing your home to foreclosure can be one of the most traumatic events in one's life. Knowing your rights and being able to find assistance can alleviate a great deal of stress. Foreclosure can come about for many reasons, such as job loss, death, marital problems, major unexpected repairs, illness or just plain poor money management.

Do not wait until you are several payments past due before seeking help. Statistics show that those who seek help before they are 90 days past due on a mortgage payment have a 75 percent chance of saving their home.

The foreclosure process takes a minimum of four months from the time that the lender decides to start foreclosure. Keep in mind that you still own the property until the foreclosure process is completed. Therefore, it is in your best interest to check into the options available to you to prevent the foreclosure, as well as options available during the foreclosure.

Lenders are in the business of making loans, not owning real estate. Therefore, they do not want to foreclose unless necessary. It is extremely important to act as soon as you experience financial difficulties.

What can you do? Here are some steps to follow:

Contact your mortgage company immediately. Be honest and explain your financial situation. Be sincere and request that they help you with a suitable catch up arrangement until you can resume normal monthly payments.

Always keep accurate records of the date, time, individual, and a summary of all conversations that you have with your lender. Include your account number on all letters sent to your mortgage company, and keep copies of those letters.

Before approaching your lender, prepare a payment plan that is reasonable and will work for you, and present the plan to the lender. Do not agree to any payment plan that you will not be able to handle. Whatever plan is agreed upon, make sure that the payments are made according to the plan.

Don't ignore mail from your lender. Read and then reply as soon as possible to all correspondence concerning your loan.

If the individual you are dealing with at the mortgage company is uncooperative, ask to speak to the supervisor.

Contact a financial counselor to help you analyze your financial situation.

If your mortgage is a FHA loan, contact the local HUD agency. If it is a VA, contact the Veterans Association. If your loan has mortgage insurance, contact the carrier for assistance.

Consider consulting a realtor to sell your home and your CPA or attorney for possible tax consequences of foreclosure.

For additional assistance, please contact the Group Law Service at 661-325-3425.