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Don't wait
Call your lender immediately. New government-backed programs can help fix your loan so you can afford the payment.
 

Organize important papers
Locate your lender information, annual tax returns, paycheck stubs, monthly utility bills and related items. Any organization providing help will ask for this information.
 
Get informed
Go to www.makinghomeaffordable.com. It's a federal Web site that determines if you can qualify for new programs, just by answering a few questions. Or, call 888-996-HOPE(4673). Call 877-448-1211
That's the Arizona Foreclosure Prevention Hotline. It offers bilingual counselors.

Go to www.hud.gov
Find a local counselor approved by the U.S. Department of Housing and Urban Development, or HUD. Click on "foreclosure avoidance counseling" link and then choose Arizona.

Bug your lender again and again and again
The people who answer the phone for our lender are used to collecting on past debt. But the government is encouraging them to find a solution with struggling homeowners. Be nice to them. Don' t lose your temper. Have the names and dates of people you've spoken to previously.

Slash your expenses
It'll show your lender you're serious about refinancing. Get a roommate to help meet your monthly mortgage payment. Cut up your credit cards. Have a garage sale. Use the Latte Factor calculator, at www.finishrich.com, to find out how much you can save simply by cutting down on daily extras such as coffee and trips to the vending machine. Click "lean" and then click the Latte Factor calculator.

Scan for scams
Mortgage fraud has risen 400 percent nationally. Housing advocates advise people not to pay big up=front fees to the growing number of groups offering help to struggling homeowners. Remember, HUD counselors provide help for free.

Consider a short sale
You won't make any money, but you won't have a foreclosure ding on your credit, either. Lenders are being encourage to consider more short sales. Or, maybe you should consider filing Chapter 13 bankruptcy, according to Bankrate.com "Doing so temporarily halts the foreclosure process and can force the mortgage lender to accept a more borrower-friendly repayment plan.." according to the site.

Know when to fold 'em
Not everyone is going to be able to save their home, and not everyone wants a bankruptcy on their record. Be mentally prepared to turn over the keys to your lender. Yes, it's a heartbreaking time, but this is a good time to make a fresh start, while learning valuable lessons for the future. It is also a good time to volunteer; it'll make you feel better. Get started at HandsON Greater Phoenix, www.handsonphoenix.org or 602-973-2212.