Avoiding foreclosure on your home requires direct communication with your lender even when you are just 30 days late. Your goal is to convince them that you want to keep your home and repay your loan.

Believe it or not, mortgage lenders don't want your home. They lose big time when they have to foreclose. So, armed with knowledge of your options, you can probably work something out. Delaying makes things worse.

Here are several things you should do to hold on to your home:

1. Don't ignore letters from your lender. Even if you miss one payment, you're in trouble. After 90 days of missed payments, your lender is getting ready to start foreclosure proceedings.

Instead of waiting, call the lender after you miss the first payment and insist on speaking to someone in the Loss Mitigation Department if you feel that your situation is bleak. If you don't ask for Loss Mitigation, you'll get transferred to the Collections Department instead and not get the help you really need.

The folks in Loss Mitigation are going to try very hard to work with you to find a way to repay them over time. But remember you have to be able to pay something. So be truthful and try to tell them what you are doing to come up with the cash.

2. Know your mortgage rights. Take out your loan documents and read them. If can't understand documents, seek help from a lawyer in your church or from knowledgeable friends or colleagues.

3. Understand your foreclosure prevention options.Lenders typically offer a variety of solutions for people who have fallen behind on their payments. These include:

• Temporarily reducing or waiving payments,
• Setting up short-term repayment plans to help you make up the deficit,
• Adding the unpaid balance to the principal of your loan, and
• Increasing your payments slightly to cover the extra amount.

4. If your lender is giving you the run around, contact a HUD approved counselor at (800) 569-4287 or TTY (800) 877-8339 or find a HUD approved counselor in your State.

5. Prioritize your spending.After healthcare, keeping your home should be your first priority. Review your finances and see where you can cut spending to make your mortgage payment.

Look for optional expenses like cable TV, memberships, entertainment, etc. that you can eliminate. Delay payments on credit cards and other "unsecured" debt until you have paid your mortgage.

6. Rent out a room or a floor in your house on a daily or monthly basis.Be careful that you check the background of the person you are renting to. Colleges and universities are good places to look for potential renters.

Consider also renting a room to foreign visitors who need lodging on a daily or a weekly basis. This may be very viable in larger cities like New York, Washington DC. Boston, Chicago, Miami, Los Angeles and San Francisco are popular with visitors. Now that the Euro is strong, visiting the United States is a bargain for foreign tourists. Certain companies on the Internet facilitate this. One company that we used was Cyber Rentals. There are others.

Get your kids to move back in and pay some rent. We know that this may not be the most popular option. However, when there's a serious problem, family members have to pool their money and resources.

7. Have a yard/garge sale. Ebay estimates that we have on average about $3,000 of stuff in our homes that is just collecting dust. Get it out and raise some cash.

8. Find a job at home at "LiveOps, West, Convergys, Alpine Access, Arise,VIPDesk and Working Solutions.

9. Cut expenses drasticallyConsider selling a second car, jewelry, a whole life insurance policy that you can sell for cash to help reinstate your loan? Can anyone in your household get an extra job to bring in additional income?

If you are working, talk to your boss about working at home (teleworking) several days a week. You can save money on gasoline and use that money to pay your mortgage.

10. Communicate how you are cutting expenses and raising money to your lender.
Make sure you tell your lender what you are trying to do. Even if these efforts don't significantly increase your available cash or your income, they demonstrate to your lender that you are willing to make sacrifices to keep your home. Most lenders will appreciate that and want to work with you.

10. Avoid foreclosure prevention companies like the plague. You don't need to pay fees for foreclosure prevention help. Instead, use that money to pay the mortgage instead.

Many for-profit companies will contact you promising to negotiate with your lender. While these may be legitimate businesses, they will charge you a hefty fee (often two or three month's mortgage payment) for information and services your lender or a HUD approved housing counselor will provide free if you contact them.

Foreclosure recovery scams are everywhere. Don't sign anything without understanding it. You may actually be selling your home or becoming a renter in it! Seek advice from an attorney, a trusted Realtor or a HUD approved housing counselor.

Please share any other ideas by commenting.