The current economic crises, with the respective increase in unemployment, has lead to an increase in the number of people searching for foreclosure prevention services. These services usually have specialists that will deal with your lender on your behalf.

If you need help, it is important to seek it early, but it is also important to seek help from the right people.

The increase in home foreclosures, and foreclosure prevention services, has also lead to an increase in fraud. Make sure you steer clear of such scams, as desperate homeowners are easy pray for such scammers.

Here are some conditions to see if you are an ideal candidate to deal with a foreclosure prevention service and have your loan terms renegotiated:

• Your employment situation has changed (laid off or less hours)
• At least 30 days behind on your payment (the longer you wait the more complicated it gets)
• Recent unexpected expense
  
• Have a sub-prime loan
• Have a high interest rate
• Owe more on the home than it is worth
• Catastrophic event that caused unforeseen hardship
  

One of the best options for foreclosure prevention services is to go through the a HUD approved, non-profit service. These organizations will help you deal with the mortgage company to work out a solution that can help you keep your home and avoid foreclosure.

Certain States, like New York or North Carolina, also have set aside funds for foreclosure prevention services program specifically created in light of the current economic climate.

Normally, foreclosure prevention services deal with mortgage holders on your behalf to try to lower your monthly payments and get your payments current. That may mean a lower interest rate, longer loan term, special forbearance agreements, or other changes in the terms of your loan.

Lenders usually agree to these changes if they are convinced that this will help avoid foreclosure.

In order to negotiate the best possible deal and avoid foreclosure, here are are few tips:

• Keep detailed records of your income and expenses
• Create a list of all your expenses, including utilities, other loans, mortgage, medical bills, tuition or any extraordinary expense you might have had
  
• keep all correspondence between yourself and the lender
• Have with you income tax information for the last couple of years, including W2 forms
• Have a detailed explanation of why you fell behind of your payments. Was it due to unexpected expenses or lower income (layoff or fewer hours at work)

When your are ready to sit down with the foreclosure prevention people you should have some money put aside. Usually, as part of the deal and as a sign of good faith, you will be asked to make a partial, sometimes full payment, of the months that you fell behind. Only then will mortgage lenders agree to new terms. Make sure you have saved up some money for this situation.

When you finally come to an agreement with the foreclosure prevention service, make sure it is on terms you can life with and not just a short term solution to a long term problem. Avoid situations where you make no payments in the short term in exchange for higher payments in the future. Unless you got to this situation because of very unforeseen circumstances, arrangements like this will only get you into trouble again down the road.

These situations are very stressful and time consuming, and take away from your enjoyment of life. Make sure that you agree to conditions that will let you live a happier more stress free life.

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