Foreclosure is a very frightening word to most people. Current government policies encourage homeownership and there is a nearly endless array of mortgage options to choose from making buying a home easier than ever before. All it takes is missing a couple of mortgage payments to set the foreclosure machine in motion. Then, the home you worked so hard for is suddenly taken away from you. Even worse, you may still end up owning money on the house if the home sells for less than your loan. Add to that, the utter devastation of your credit rating and you have a very sad scenario.

There are steps you can take to prevent this unhappy event.

First and foremost, make your mortgage payments your top priority before any and all other considerations, except health-care. If you are in financial trouble, don't worry about credit card payments, personal loans or other unsecured debts until you pay your mortgage. While falling behind in these bills can cost you money in fees and even damage your credit, it is not nearly as damaging as a foreclosure. Cut out extravagances such cable TV, entertainment, memberships to gyms, etc. Make pizza at home instead of eating out. Curtail extra spending everywhere you can.

Never simply ignore the problem. The farther behind you get on your mortgage, the harder it will be to catch up and the more likely you are to loose your home, despite any last minutes efforts you may make.

Contact your lender as soon as you realize that you have a problem - you are laid off or fired, you have an illness that means you will be out of work for a time, any other reason you may be temporarily set back financially. Your lender doesn't want your house. More importantly, lenders have options that will help borrowers through difficult financial times.

Open and respond to all mail from your lender. First notices will offer good information about foreclosure prevention. Later correspondence may include information about important legal actions. Failure to appear in court will not excuse you from a foreclosure.

If you have any assets that can be sold to raise some money - a second car, jewelry, a whole-life insurance policy, a valuable gun collection - go ahead and sell them. Is there someone in your household that can get a second job for awhile? While it may not raise enough money to get you out of financial trouble, it will show your mortgage company that you are making an effort, you are making sacrifices to save your home.

Avoid foreclosure prevention companies who charge you a fee for helping you with foreclosure prevention. Use that money to pay your mortgage, instead. Most of the companies will provide information that you can get for free from your lender or from a HUD approved housing counselor.

Don't loose your home to foreclosure recovery scams. If a company approaches you and tells you they can prevent your foreclosure if you sign a document, do not sign. You may well be signing your home over to a total stranger and you will become a renter in your own home. There are many options and resources to help you.

Your lender is always a very good place to start. Don't fail to contact them because you are scared of what they will say or you are embarrassed. Not talking to them is likely the worse mistake you will make.