Most people fall into less-than-ideal financial times at some point in their lives. If you're currently going through such a situation and are having trouble affording your monthly home mortgage payments, then you might be worried about the threat of foreclosure. There's no denying that foreclosure is a scary thing, but the good news is that it can often be avoided if you simply know what to do versus what not to do when you're having trouble with making payments.

DO Reach Out to Your Lender

The first thing you should do when you realize you're going to have trouble making a loan payment is to contact your lender directly. Ideally, you should reach out to your lender before your due date, but if that time has already passed, it's better to do it late than never. Often times, lenders are more than willing to push your due date back slightly or make other arrangements to help you out. After all, in a home foreclosure, lenders tend to lose money on the deal--so they're generally willing to do quite a lot to avoid a foreclosure when possible.

DO Consider a Short Sale

Unfortunately, there's only so much a lender can work with you before they'll need to legally start the foreclosure process. If it reaches this point, then you might want to consider putting your home up for sale. This way, you still have a chance of selling the home for a high enough price to pay off your loan. In many cases, however, you'll end up faced with a short sale. Discuss this option with your lender to see whether or not they'd be willing to accept a short sale, as this can be a viable means of avoiding a foreclosure on your credit report.

DON'T Sign Your Home Title Over

Finally, avoid making the mistake of signing your home's title over to another lender. Some dishonest mortgage companies may make you a "promise" to sign the title back over to you once you've made up your missed payments, but these kinds of deals are often scams. In general, any company that promises to help you avoid a foreclosure is generally not one that you should trust--especially if the process involves you signing the title of your home over to another person. 

By following this simple list of foreclosure dos and don'ts, you'll have the best chances of being able to get through this difficult financial time. To learn more about foreclosure, consult a professional at Harold Jarnicki Attorney At Law.