It has been a single word that has scared American even more: foreclosure. Having to lose your home because you can no longer pay the loan you paid to buy it could drive you and your family to the tipping point. The even bigger problem is that most homeowners have already sensed that foreclosure ahead of time, but did not act on it quickly.

In order to save your beloved home from foreclosure, you need to be quick on the draw. The longer you wait, the more time wasted and that could cost your home. And even if you did not allow your home to go into foreclosure, the lender may be able to get a judgment of deficiency for the difference between what you owed the company (including attorney’s fees) and what you home is store for auction. You have to know, however, that not all states allow lawyers to collect the deficiency rate.

Here are some other recommended steps to avoid in order to keep the house as your own.

Create a budget

Have a very clear picture of your home income and expenses, including spending some groceries and gasoline. You are likely to need this information as you work out on a payment arrangement with your lender or while filing for a bankruptcy protection. Having a budget gives you a better idea, as it gets to know whether the homeowner has enough money to keep his home.

Write down your debts

After you have created your house budget, you also need a list of your debts, as well as the interest rates you are paying and the minimum payments. Be sure to highlight all debts that you own, as well as the interest rates you are paying. This list gives you a better idea on where you spend your money.

Pay on time

If you paid for your house using a home loan, do whatever you can to pay the bills on time. This includes paying your credit card, utilities, and other bills in your house. Once you start falling behind on your mortgage, getting back to your usual credit payment is a slow and steep climb. You may have to consider taking a second job, or sell some household items on eBay.

Refinance

If your credit is still on a positive note, you still have equity, and you can now get a loan at a decent rate, you may want to consider refinancing your home or take out a home equity loan. However, you need to be careful in spending your equity or you might run out of money when you still have loans to pay (and you definitely should not pay your credit card debt with home equity).

Make an arrangement with the lender

In reality, lenders do not want to take your home away from you, as it is expensive and time-consuming. Ask a representative of your lending company about having arrangements into paying lower payments over a certain time period, or tacking missed payments on to the end of the loan. If you are qualified, the lender would require you to fill out some paperwork and be sure to get your copy of the agreement.