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Yielding Wealth | Personal Finance:

When the bank sends you a notice of foreclosure, it may seem like a done deal. But, what if it isn’t? Kelly over at Taxgirl forwarded me an email that offers some great advice on how to work through the foreclosure process. The advice comes from Jacob Benaroya, president and managing partner of Biltmore Capital Group, an institution that purchases problem loans from mortgage lenders.

Here are 10 things  Benaroya suggests when your home is in foreclosure:

Don’t hide. Respond to mail and phone calls directly.
Be proactive. Contact the lender and talk about your financial situation.
Realize that the mortgage lender isn’t in the real estate business. The lender wants the payment (and the fees, of course!).
Understand that your mortgage lender may be more willing to negotiate in the current climate.
Know your rights. Review all mortgage loan documents and understand what your lender can (and can’t) do if you fall behind in payments.
Do not turn to companies that promise to prevent foreclosure. They charge fees that could be better used to make a mortgage payment. There are free resources that can help you.
Contact a counselor that has been approved by HUD. You can receive free or very low cost counseling about what to do about your foreclosure.
Watch out for foreclosure recovery scams. Mortgage fraud is growing. Watch out for scammers who claim to negotiate terms, but are really out to get your house — or just walk away with a “fee.”…