If you are in default on your home loan and are facing foreclosure it is important to take action immediately, do not waste time. Don't make the mistake of avoiding your lender during this time.

There are many programs that lenders have to help borrowers that are in default. Ask your lender about loan workout options. Depending on the type of loan you have (FHA, VA, Fannie Mae, etc.) the options to foreclosure may vary but some of the options available may include:

Repayment Plan. The lender will increase the monthly payment by a specific amount until the loan is paid off.

Forbearance. There are a few different types of forbearances, but generally it is a temporary reduction or suspension of monthly payments for a specific period of time. After the forbearance expires loan payments will resume at an increased amount until paid off.

Loan Modification. Are for borrowers who may have a long-term financial hardship. The lender will modify or make permanent changes to the loan terms like extending the loan repayment period.

Partial Claim. FHA loans have this feature. U.S. Department of Housing and Urban Development (HUD) will make a one time payment from the FHA- Insurance fund to the lender to bring the loan current. HUD will then place a lien against the title of the property and require the borrower to repay the monies back.

If you have a conventional loan and pay private mortgage insurance (PMI), you can contact the insurance carrier to see what services they offer to clients in default or in foreclosure.

Other options to consider when you can't work out the loan with the lender may include:

Pre-foreclosure sale. Selling the property for less than the amount owed to avoid foreclosure. To use this option the lender must first agree to accept an amount less than the mortgage balance as pay-off.

Deed in lieu of foreclosure. The borrower voluntarily gives up the property to the lender to avoid foreclosure proceedings.

Loan Assumption. Transfer the existing loan to a new buyer. The buyer must qualify and meet the lender's criteria. Not all loans are assumable.

Additionally, you can also try to sell the property for full value; the lender or the lender's trustee may grant you time to complete the sale if you provide proof.

Also, if you are in the military, ask your lender if they have any special programs designed for military personnel.

Any one in this predicament should consider creating a budget and find ways to cut back on living expenses. Explore different ways of increasing your income by working overtime or getting a second job. Remember to utilize your time wisely; with the right options and hard work you can save your home from foreclosure.

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