Unfortunately, foreclosure may be the biggest buzzword of 2010.  Foreclosure is the worst nightmare for a homeowner… and a nightmare that haunts your credit score long after you move out of your house.

The key to avoiding the bank kicking you out of your home may be communication.  All too often people put off late notices from their mortgage companies.  Some avoid them altogether.  This is not the thing to do if you want your family to stay put.

Rule number one should be that if you are going to be late on your mortgage payment, you should let your lender know.  You may think that it’s too late for that, but late contact is always better than no contact.  Make a promise to yourself that you will call the bank first thing in the morning and explain your situation.

The truth is that banks do not want to foreclose on your house.  They want you to make payments.  If you keep in contact with them and let them know of any changes in your financial situation they are more likely to make concessions for you.

Some of the concessions that a bank may offer is a repayment plan.  This is where you agree to make extra payments on your monthly mortgage at some future date.  In the meantime, you make your current payment and avoid foreclosure.

Other options include a loan modification or deed in lieu of foreclosure.

The bottom line is communication is key to keeping yourself and your family in your home.