By now, most of us have heard all the reasons foreclosures takes place – among them, job demotion or loss, sudden illness, death, divorce, excessive debt reorganization or not being able to pay or refinance an adjustable rate mortgage. So let’s look at a few ways to stay ahead of the game if that moving train seems to be barreling your way.

The first is to prevent the filing of a Notice of Default by calling your lender. Begin by digging up your original mortgage documents and understanding your mortgage rights and the timeline involved. Stop ignoring letters from the lender, take a deep breath, suppress your discomfort with all this and discuss the following with the lender:

• The possibility of a repayment plan (called forebearance). The lender may agree to wait if you work this out with them.

• Ask for a payment to be forgiven. If you can agree on a way to bring things current, the lender might give you a break and waive your obligation (this however, rarely happens).

• Work out casting missed payments over a longer term. For instance, if your normal mortgage payment is $1500, you’ll be adding an extra $100 a month until you’re caught up.

• Ask for a change of the terms of your loan. With the impending banking market bailout, this may actually become easier. The lender may be able to freeze the interest rate before it increases, change the rate to a more manageable one or extend the amortization period. This is called a note modification.

• Have the lender make a separate loan to you, called a partial claim.

If a Notice of Default is already filed, you can, of course, sell your home. But first get a few Realtors to give you an opinion of value. You can also consider a short sale if the house is worth less than what you owe on it. This does affect your credit but not as seriously as it does with foreclosure.

Or, you can sign a Deed-in-Lieu of Foreclosure, in essence deeding the house back to the bank with a properly prepared and notarized deed. The lender then effectively forgives the mortgage, canceling the foreclosure action. As far as your credit score goes, however, this action is said to be as damaging as a foreclosure. However, you may be able to remain in the home until you can find another place to live if you ask for these terms up front.

For help with all this, don’t be taken in by foreclosure prevention companies (which wil no-doubt accompany this hub), where you’ll pay fees using funds that you should be using to pay the mortgage anyway. Instead, try to organize your finances as best you can and find a HUD-approved housing counselor through the internet or call (800) 569-4287.

Here are a few non-profit agencies that may help as well:

* Neighborhood Assistance Corp. of America: 1-888-302-6222

* ACORN : 1-866-672-2676

* Homeownership Preservation Foundation :1-888-995-4673

* HomeFree-USA: 1-866-696-2329