prevent foreclosureIn a few days it's going to be easier and easier to prevent foreclosure by working with your bank to do a loan modification. The rules have changed, and the new administration in Washington has passed legislation that will help people who are upside down stay in their homes with a loan modification. Stopping the rising tide of foreclosures is the whole purpose of the legislation. It is so important to prevent foreclosure right now, so if you can work with your bank in the coming weeks to prevent foreclosure, do so if you are at risk of losing your home.

Keeping your home with lower payments may help you ride out this crisis in our economy. When the housing market starts to return to health, you can sell your home and possibly make some money on the equity you will be earning once homes start appreciating again. Not all housing markets are as dismal as the ones in Florida, Michigan, Nevada, California or Arizona. If you live in an area where the homes are appreciating, even barely, and can prevent foreclosure by modifying your loan, you'll be in good shape when the economy improves.