Foreclosure is something that should be prevented if at all possible. Families facing this issue should remember to practice the ABC’s: Always Be Communicating.

Communicate Problems With Repayment Before They Get too Big
Early communication of an impending problem can go a long way to heading off foreclosure. Too many people wait until the 11th hour before contacting their lender. Contacting the lender as soon as it becomes difficult to make payments empowers the lender to begin the process. It also shows good faith and a willingness to work toward a solution. Those are the qualities that lenders look for when determining if a loan modification is a possibility.

Communication Often With Your Lender
Staying in touch with the lender during the process ensures that everyone has accurate information. There are countless stories of homes that have been foreclosed on containing stacks of unopened collection notices from the bank. As unpleasant as it may be to face the challenge of mounting debt, keeping the communication channels open via frequent contact with the lender can ultimately prevent foreclosure.

Communication Your Financial Situation Clearly
Create a file for all documents pertaining to the mortgage. Keep another file with current bank statements, pay stubs and check stubs from payments made. Create a budget. It doesn’t have to be complicated. List income sources in one column and expenses in another. Be realistic. Use this as a tool to find creative ways to save money. Show it to the lender when they ask for a personal financial statement. Update this list as expenses change. Remember, this might be a long process.

Use Certified Deliver and Return Receipts to Confirm Communication
Phone calls should be documented. Include the name of the representative, the date and the time. Letters should be sent via Federal Express, UPS or another form of certified delivery. Emails should include a request for verification of receipt. If one is not received, resend until the representative complies. Keep a log of all communication handy when calling the lender for easy reference.

When it comes to preventing foreclosure, there’s no magic formula. Lenders are in the business of collecting payments and no amount of communication will save a home if there’s no hope of making payments. However, if the financial difficulties are a temporary hiccup, and the lender can reasonably believe that they will be paid eventually, communication is the most important step to take. Communicate early, clearly, often and via certified method and the chances of preventing foreclosure increase dramatically.