A recent Reuters news story reported that only three out of 10 seriously delinquent borrowers (those at least 60 days late with a mortgage payment) are exploring ways to prevent the foreclosure of their homes.

That means seven out of 10 delinquent homeowners are clueless that there are solutions out there that they should be pursuing posthaste!

But first, let's get one thing straight: Lenders are in business to not lose money. They are not humanitarians, but they also are not trying to inflict pain on their customers intentionally, either. It costs a lender about $60,000 to foreclose on a borrower. Any plan that helps it cut that loss is a plan that deserves consideration.

If you or someone you care about is falling behind on mortgage payments, here are the steps you need to follow to get back on track:

-- Do not hide. Open the mail; answer the phone. Better yet, do not wait for your mortgage lender to contact you, and do not wait for your payment to go 60 days delinquent. When you call your lender, ask to speak with the payment resolutions department, not customer service.

-- Present your situation, then listen. Do not agree to any terms until you have received counsel from a third party -- an attorney, credit counselor or housing counseling agency. Your lender should have a list of counselors. If your lender does not offer counseling, call the U.S. Department of Housing and Urban Development at 1-800-569-4287 to find a counseling agency near you.

The Homeownership Preservation Foundation is a housing nonprofit. Its hot line (1-888-995-HOPE) is dedicated 24/7 to helping homeowners facing foreclosure.

-- Figure out whether your problem is short-term or long-term. This will help your lender know what options it can offer to you. Make sure you have all your information available, such as your income and expenses.

-- Ask whether you can make partial payments when you do not have enough to make a full mortgage payment. Each lender has its own rules and conditions, but there may be exceptions. If you can make partial payments, get this in writing. Understand that whatever you pay will go to pay the interest first and probably will not even cover that. Unpaid interest will add to the principal balance owing.

-- Come up with a payment plan you can handle, one that is reasonable and shows the lender it will be repaid. Be open; be honest.

-- Keep very detailed notes of all your calls and correspondence. Keep all mail you receive from the lender, including the envelopes that have postmarks.

While not all home foreclosures can be reversed, many can. These days, it appears that lenders are more motivated than ever to work with borrowers. So if you find yourself in this situation, be courageous. Pick up the phone and make that call now.

Mary Hunt is the founder of www.DebtProofLiving.com and author of 17 books, including "Debt-Proof Living." You can e-mail her at mary@everydaycheapskate.com, or write to Everyday Cheapskate, P.O. Box 2135, Paramount, CA 90723. To find out more about Mary Hunt and read her past columns, please visit the Creators Syndicate Web page at www.creators.com.
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