Foreclosure could happen to anyone. Consider the potential for a lender to begin foreclosure. You (as a borrower) could miss a couple of weeks work due to an accident. You could face unexpected medical bills or even lose your job. It’s been said that many people are only six weeks away from bankruptcy – that most people have little savings and could live without income for only a matter of weeks. Avoiding foreclosure, for most people, depends on the regular income.

Considering that, the potential for foreclosure is very real for most people. For whatever reason, you’ve missed some payments and there’s little doubt that your lender is about to start foreclosure proceedings. What should you do?

Unless you plan to simply vacate your house and let the foreclosure occur, start working on solutions as early as possible. As tempting as it is to let the phone go unanswered and to drop those “final notice” letters in the trash without opening them, you must take a proactive attitude. Talk to your lender early and often about your financial problems.

If your goal is to save your house from foreclosure, make every effort to make payments, even if they’re late. Even if a foreclosure timeline is included in your mortgage contract, most lenders have some leeway on taking those steps. If you’re making the efforts, and if you can offer some promises such as expecting to get payments caught up as soon as you’re back at work (or whatever), the lender may very well be willing to put off action for a period of time.

Avoid the temptation to make empty promises in an effort to stall foreclosure. Telling the lender you will pay by next Friday is a promise, and it will only serve to further damage the possibility of holding on to your house if you make and break promises.

Whether it’s a HUD foreclosure, or a private lender or bank foreclosure, you may qualify for what’s known as “forebearance.” It simply means that the lender recognizes the fact that special circumstances exist and that you will be given additional time to make payments or to catch up on missed payments. Some lenders may also allow you to pay only the interest for a couple of payments, if you explain extenuating circumstances. Again, participation depends on your early notification to the lender. If you wait until payments are late, you may lose your opportunity for this kind of aid.

If the bank foreclosure is going ahead no matter what you do, it may be time to resort to “plan B.” The important thing here is to have a “plan B.” Realize that you have to figure out how to put a roof over your head (and that of your family). Decide what options you have, including the generosity of relatives – humbling though that may be. Take a careful inventory of any assets you have - including cash - that can help you move. It’s probably also a good time to take stock of your spending habits.

Especially if you’re in a home that qualified for a funding program, you should stay put for as long as possible. HUD foreclosures become more complicated if you willingly move out before the foreclosure becomes official. For more information about HUD foreclosures, visit the HUD website at http://www.hud.gov/foreclosure/index.cfm.