Stay on TOP of any potential problems.  Assess your situation.  If your house payments are rising, sit down and put everything out on paper in front of you.  If you need advice on cutting back your spending or increasing your income, consult a fee-only financial planner or a nonprofit credit counselor, such as one certified by the U.S. Department of Housing and Urban Development. Credit-counseling services should be FREE or low-cost -- say, less than $50. per counsel.   There are also companies such as Neighborhood Assistance Corp. of America in Inglewood California who will assess your individual situation to see if they can help save your home from foreclosure.  So don't wait until it is too late!  If you are having any trouble making your mortgage payments, call!  (310) 412-2600   241 S Market St., Inglewood, CA 90301  Get directions

Fixed rate mortgages are still attractive and are generally lower than fully indexed rates on adjustable-rate loans. If you can't refinance because your financial prospects are poor, you have no equity in the home or you're looking at a large prepayment penalty, you may want to try selling your home.  A full-service Realtor charges 6% (3% to the other Realtor and 3% to them for listing it)  However, you NEED a full-fee, full-service Realtor to market the property as only a full-fee/full service Realtor can.  In this type of market you NEED the BEST marketing and sales strategies.  You may be able to work out a deal with the Listing Agent that if they sell the home themselves (bring the Buyer), they will take a lower fee.  Some people try to sell it themselves and this is no easy task.  You have to price the property aggressively, market it like crazy, make yourself and your home available for showings/open houses, and close the deal on your own.  Most Buyers are trying to save $ going to a For Sale By Owner so they will want to get the "BEST deal" and will expect a significant price reduction.  You also open yourself up to a future law suit if all pertinent facts aren't disclosed on the property and signed off on.

Take advantage of any mortgage relief, if it's available.  Most homeowners in financial trouble may be allowed to request extra time (up to 90 days) to avoid foreclosure. Their cases will be considered individually. In California, legislators have proposed creating a mortgage pool to assist first-time homeowners in trouble. Fannie Mae and Freddie Mac soon will introduce their HomeStay program, which is designed for borrowers with adjustable-rate mortgages who are at risk for a monthly payment increase.

Head off foreclosure. As soon as you think you will miss a mortgage payment, call your lender to discuss your options. The options are re-fi's or  forbearance (you temporarily pay nothing or only a minimum amount, making up the payments either over time or at the end of the loan) or a loan modification (the lender temporarily adjusts the interest rate). The better your credit score and employment history, the more receptive the lender will be. But note that some lenders may not be able to change the terms of your loan until you're at least 30 days delinquent, and sometimes as many as 120 days past due.

If all else fails, you could try to negotiate a short sale. In that case, the lender agrees to cancel your debt in exchange for the proceeds from the sale of your home. As long as you're an owner-occupant, not an unhappy investor, lenders are likely to be receptive.  They prefer to avoid the hassle and expense of foreclosure.

A real-estate agent can help you negotiate the deal.  If you NEED to call me for help, I'm HERE for YOU.  You have a limited window of opportunity: Most lenders allow just 3 months' delinquency before they issue a formal notice of foreclosure, and state law mandates how quickly the process moves after that.