Although it's a situation none of us ever wants to be in, home foreclosures are on the rise. If you ever reach the point where your lender is ready to foreclose on your home, the following tips may help you delay or even avoid foreclosure proceedings.

Tip 1: Deal with the problem head on.

If you can't make your monthly payment, face up to it and take steps to deal with it. Avoiding the problem will only make things worse.

Tip 2: Your lender is your friend.

The best way to avoid foreclosure is to maintain a dialogue with your lender. Although it may not seem that way at times, it is in their best interests to help you avoid foreclosure.

Tip 3: Do your homework.

It is important to know what rights you have should you go into default. Go over your loan documents so that you know what will happen and the time frame in which it will happen.

Tip 4: Consider talking to a housing counselor.

Housing counselors are available through grants from the United States Department of Housing and Urban Development. These counselors can take a look at your situation and help you get your finances organized. Some counselors will even represent you in negotiations with your lender.

Tip 5: Spend your money wisely.

When trying to avoid foreclosure it is important to spend money only on necessities. Take a look at your finances and eliminate unnecessary expenses so that you can make your mortgage payment and feed your family. Eliminate luxuries if need be, including cable TV, health club memberships, and eating out at restaurants. You should also consider delaying payment on unsecured credit cards if that money is needed for paying your mortgage.

Tip 6: Consider cashing out.

Take a look at your assets and consider selling them for cash so that you can pay your mortgage and any back payments you might owe. This includes higher-ticket items like jewelry, furs, cars, and boats. Lenders will be happy to work with people who are demonstrating that they will do whatever it takes to make their house payment.

Tip 7: Don't pay a fortune for someone to help you stop foreclosure.

While the vast majority of these companies are legitimate, they are simply offering negotiation services through a HUD approved counseling service (see Tip 4). In many cases, the HUD counselors will help you for free.

The important thing is to stay calm and know that there is help available for you.