If you take responsible steps to save your mortgage and work to avoid digging yourself in deeper your efforts could also help others facing the same dilemma.

The AARP says taking the appropriate measured steps to save your home from foreclosure includes avoiding scoundrels who would take advantage of your vulnerability and reporting the frauds to the authorities.

Nowhere is the need for consumer activism more obvious now than in the mortgage arena. Because of over-selling loans to borrowers with a questionable ability to repay them, millions are losing homes and criminals who prey on them would like to add to that trend.

RealtyTrac.com.com says new foreclosures nationwide rose 62 percent in April this year, compared to foreclosures in April 2006.

AARP advises:

• At the first sign of trouble, before you miss a payment, contact your lender and stay in touch until you are in the clear. Your lender can help you in several ways.

  1. A workout. Lenders would prefer that you keep your home and make good on your promise to repay your debt. They are not in the business of selling homes. A work out or loan modification includes a structured payment plan to help you get current with your loan. The plans are as individual as each borrower, but are based on factors that show such a plan is viable for your situation.

  2. Refinance. Your lender can tell you if you qualify for refinancing your loan with terms that give you breathing room on your monthly payment. Refinancing repeatedly over a short period is generally not a viable option. If one refinancing will do the job, it's likely a good option. Even though your lender can steer your in the right direction, shop around for the best deal.

  3. Counseling. You may have been cajoled, misled or other wise rushed into a purchase you couldn't afford, but that's likely because you weren't wise to what buying a home really means.

Your lender can refer you to a counselor to get you up to speed and perhaps show you where you can free yourself from financial trouble, but you need to know you are getting a counselor worth his or her salt.

There are two counseling operations with federal government participation, regulations or both.

The U.S. Department of Housing and Urban Affairs, along with a group of lending institutions, community development organizations, real estate, mortgage insurance companies and the secondary mortgage market supports the new "National Industry Standards for Homeownership Education and Counseling".

The "Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA)" contains provisions that require all individual bankruptcy candidates undergo credit counseling before filing for bankruptcy relief and take personal financial management studies before debts can be discharged. Only lessons taught by U.S. Trustee-approved counselors meet the law's educational provisions and the counselors also practice outside bankruptcy cases.

Some counselors are approved for both programs and are also members of National Foundation for Credit Counseling (NFCC) a non-profit credit counseling network, which includes the Consumer Credit Counseling Service (CCCS) and others identified by the NFCC member seal. All NFCC members are accredited by the Council on Accreditation of Services for Families and Children Inc. (COA)

The best way to start looking for a counselor is to ask friends, family members, co-workers or other trusted individuals for referrals and check for affiliation with one of the groups above. The best referral comes from someone who recently completed a satisfactory counseling program.

Not all counselors are affiliated with any of the groups so it's up to you to check for state licensing, other regulations, affiliations or some track record evidence that proves professionalism.

• Sell or sell and downsize. You may have learned you simply can't afford the mortgage. It's better to sell while your credit standing is intact than to wait for a default or foreclosure. Renting now with good credit will allow you easier entry back into the realm of homeownership when you are financially up to it.

  If you can sell your home and pull out enough equity to buy a smaller, more affordable home you'll likewise retain your credit standing and homeownership, instead of paying rent.

• Consider bankruptcy. Talk with a bankruptcy attorney, accredited counselor or other qualified individual to determine if bankruptcy is the way to go to save your home.

• Don't make matters worse. Predators are preying on homeowners in trouble, like a lion stalks an injured gazelle. Steer clear of those making promises to quickly bail you out. You didn't get into financial trouble over night. You won't recover over night.

  Avoid heavy pressure from "rescuers" offering "lease/buy backs," "we buy homes," "save your credit," and other come-ons that require you to pay exorbitant fees and sign documents you don't understand.

  Stick with referrals you've checked out.

• Turn in the crooks. AARP advises if you think your lender or other service provider is dishonest, report it to the proper authority.

  Call your county office of consumer affairs or consumer protection. Call your state attorney general or state office of real estate, mortgages or banking.

  Also contact the Federal Trade Commission online or call 1-877-FTC-HELP (382-4357).

  Your efforts could very well help the next homeowner in trouble.

Published: May 16, 2007

Use of this article without permission is a violation of federal copyright laws.

A journalist for 35-years, Broderick Perkins parlayed an old-school daily newspaper career into a digital news service offering editorial content and consulting services. Perkins' San Jose, CA-based DeadlineNews Group includes the flagship news site, DeadlineNews.Com, offering real estate, personal finance and consumer journalism, and a backshop, the Deadline Newsroom.