In this tough economic time, every family and home is subject to the worst case scenario. Although many of us tell ourselves that it could not possible happen to me...the only true safety net lies within well managed finances. Foreclosure is one of the worst things someone can go through and sadly many families have gone through or know someone who has been affected by this economic aftermath. Not only do they lose their house, but their credit is severely damaged. It is almost impossible to recover from, and can lead to even more problems down the road. However there are ways to avoid foreclosure and save you from losing your home and ruining your credit.

First remember to Live within your means. The first thing you can do to help yourself from ever being foreclosed on is to not over-buy. What that means is don't stretch yourself on purchasing a house. That may mean that you should rent rather than buy, or buy less than your means.

Second you will want to Stay current with your purchases, charges, expenses and bank policies. This may seem obvious, but so many times laziness takes over, and we forget to pay things. Make sure you have it marked down on a calendar or some type of reminder set that you pay your mortgage on time.

Third (this one is the most overlooked) always Negotiate. If you do start to see yourself struggling to make that monthly mortgage payments, go to your banker and negotiate. The bank does not want your house back, and many times they are willing to listen to you. Tell them your situation, and work out a plan to stay in your home and work out a new payment structure.

Lastly you should always gives yourself options - Do a short sale. This will take some advice from a real estate attorney or real estate broker. A short sale is simply selling your house for a steep discount, often less than what you owe, so that you don't end up in foreclosure. This helps you avoid foreclosure and gets you out of a bad situation. There are many ways to avoid foreclosure and a few of them are listed above. You don't have to give up on your house, but instead work hard to stay in it.

This article was provided the authors at Live Love Coffee which are online single cup coffee makers that feature other interesting articles that includes: How to Fire Employee