One of the most dreaded things that can happen to anyone is getting behind in your mortgage payments and going into pre-foreclosure. Yes you heard me right, pre-foreclosure. What normally happens when people miss a few mortgage payments is the back sends them a legal notice that they are in breach of their mortgage. This is when the pre-foreclosure process starts. Basically the notice will tell you to either make up the payments immediately, or the bank will be forced to foreclose on the property. Remember, the last thing the banks or lenders want is a property to deal with, they only want their money.

The simplest way to keep yourself out of foreclosure is to pay your mortgage first before all your other bills. You are more likely to succeed dealing with a collection agency then you are with the banks and their lawyers. When you miss a mortgage payment or two, you are actually forcing the banks to start proceedings.

The worst part about being foreclosed on is what happens to your credit rating. It really takes a beating and it could take 7 years before your credit report is half decent. So what can you do to stop going into foreclosure. Some simple rules to follow are, if you miss a payment, call you bank immediately and set up an appointment to speak to a lending officer or the manager. The worse thing you can do is ignore their phone calls or letters. If you get in touch with them, they will know you are sincere about working out a plan that is a win win for you both. Contacting them immediately may also put a stop on the foreclosure. Remember, they want their money, not your house.

Most banks will be happy to work with you if you let them. Often what happens is people wont give them the chance and subsequently, they lose their home. In order to keep your self out of financial trouble, be careful not to extend yourself with a large mortgage. Only buy within your means versus what you really want. We all want a bigger home, but that doesnt necessarily mean we can afford one.