The U.S. Department of Housing and Urban Development recommends that if you are facing foreclosure, you should contact your lender to see if you can work out a payment arrangement and discuss your options. You can also find tips to avoid foreclosure at HUD.gov, or call MakingHomeAffordable.gov at 888-995-HOPE (4673) for free, comprehensive foreclosure assistance 24/7.
Get prepared for a discussion with your lender by seeking advice from a HUD-approved, non-profit housing counselor. This advice is free of charge and can help you understand what options are available to you if you can't make your mortgage payment. There are housing counseling agencies in every state, and you can find the one nearest to you at HUD.gov. These counselors can provide expert, unbiased advice in person or over the phone.
Many loans are insured by the Federal Housing Administration (FHA). If you have an FHA loan, lenders are legally required to provide loss mitigation services to you if you are at risk of default. Your counselor can tell you about special programs including mortgage modification or government programs designed to assist homeowners at risk of foreclosure. Be aware: many companies that might turn up on a search for "how to avoid foreclosure" can promise to help you but are really scam outfits that will charge you exorbitant fees for their services with no results, according to the Federal Trade Commission and MakingHomeAffordable.gov.