Taking steps now to avoid foreclosure could help homeowners avoid financial trauma. Many people that bought into the ARM hype during the housing bubble are finding that they cannot keep up with their house payments now that their introductory period is over. Initiating a short sale could help some individuals minimize their damage.

Many factors contribute to the culmination of financial woes including illness, loss of work and divorce. Keep the lines of communication open with your lender. Let them know that you are experiencing a tough time and they may be able to provide assistance. If you wait until you are several months behind in the mortgage payment, it may be too late. Remember that lenders have a responsibility to their guarantor\'s to contain and minimize their financial losses, so an agreement may be forthcoming to remain in compliance with these guidelines. Be prepared when you contact your lender, they will need documented proof of financial hardships.