Behind on your mortgage loan payments? Afraid of losing your home? Worried about foreclosure? Considering bankruptcy?

Don't panic! You have options available. The first thing you need to decide is whether or not you want to keep your house. No matter which option you choose, the most important is to keep regular communication with your mortgage lender. If you are behind (delinquent) on your mortgage loan payments, don't wait, act now. The earlier you take action, the more solutions you have available to you.

To begin, find the following documents and put them into a file folder. You will need:

• Original loan documents

• Records of any communication or contracts with your lender

• Last 2 paycheck stubs for both you and your spouse

• Last 2 months of bank statements

• Last year's tax returns

• Your family's monthly budget, if you have one

• Letter of Hardship (explaining why your payments are behind, such as medical difficulties, etc.)

Be sure to keep written notes of all communication with your lender, and add it to your file.

To keep your house, if you only need a short-term solution, here are some options:

1. Reinstate Loan. You can pay the past due amount to your lender. However, if you wait until too far in the foreclosure process, this may be impossible. Of course if you're behind on your payments, you most likely don't have the cash to reinstate the loan.

2. Loan Forbearance. You will have to work with your lender who may agree to reduce or suspend payments temporarily. After the forbearance, you will probably have to reinstate the loan by paying the past due amount. This is a good option when you are expecting extra money soon, such as an insurance settlement, tax refund, or job bonus.

3. Repayment Plan. Your lender will require your financial documents, and will ask you to sign a contract agreeing to repay the past due amount by increasing future payments. It will usually accompany a Loan Forbearance. This is a good solution if you will have substantially more income over the next year or so, and then can afford the regular monthly payment after that.

4. Extract More Income. Can you rent out a room, such as a basement or a granny house? Or can you rent out your garage to someone who wants to store their boat or RV? If it's a rental property, can you raise the rent to a higher market rate?

5. Cash Out your Assets. Think of assets you have sitting around that can help you right now. Can you sell a car, a boat, an RV? Can you sell jewelry, cash out a life insurance policy, or tap into your retirement? Remember this is only a temporary fix.

Every situation is different, please consult professionals for the best advice. The following experts are highly recommended:

• Attorney (experienced in real estate and/or bankruptcy) - to advise you of your options, negotiate with your lender, and review contracts before you sign. You can find a low-cost attorney membership plan through a pre-paid legal service such as http://www.prepaidlegal.com

• Accountant (or Enrolled Agent) - to calculate your anticipated tax penalties for each scenario. Check out AICPA organization or NAEA organization online.

• Real Estate Broker - experienced in both mortgage loans and home sales. Locate at http://www.realtor.com

• Financial Counselor - a consumer advocate to guide you, and negotiate with your lender. Contact a Loss Mitigation Consultant at http://www.realestateproexpert.com or for a government-funded assistant program, call 1-888-995-4673 (HOPE)

A word of caution: be aware of foreclosure scam artists. Before giving money to a foreclosure specialist or counseling agency, check their record at the Better Business Bureau, www.BBB.org Don't sign over your property to anyone until your attorney reviews the documents and contracts! If you think you can't afford an attorney, consider enrolling in a pre-paid legal membership program.

If you prefer long-term solutions to avoid foreclosure and keep your house, look for Part 2 of this series, the article entitled, "Avoid Foreclosure and Save Your House with Long-Term Solutions". If you just can't hold on your house, and are willing to let it go, look for Part 3 of this series, the article entitled, "Avoid Foreclosure by Giving Up your House".

R.P. Brown serves the California Central Coast, helping home buyers and sellers to realize their dreams of homeownership. Experience Includes: Real Estate Broker; licensed since 1988 Member of local Board of Realtors, CAR, and NAR Notary Public; commissioned since 1998 Lifelong resident of San Luis Obispo county (4th Generation local family) A.A. Degrees in Real Estate and Small Business Management Technical Writing Certificate Business Major at Cal Poly State University Established in our community -- connections with many residents & merchants Past President of 2 local non-profit organizations Continue to volunteer for local organizations Previous business owner Qualifications Include: Experienced in all phases of Real Estate services, including First Time Buyers Buyer's Broker Foreclosures & Bankruptcy Cases Mortgage Lending Property Management Motivated -- Work hard for you! Ethical and Trustworthy MLS access by internet For more information, visit author and real estate Broker R.P. Brown at http://www.RealEstateProExpert.com

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