The key to foreclosure prevention begins when you are shopping around for a mortgage loan.   The following suggestions will serve you well when you are working with loan officers or mortgage companies:

• Know your credit score and what is on your credit report. There are many cases of homeowners not fully aware of their credit status.   In some cases, errors on a credit report or a few old items cause a score to drop to "subprime" territory - meaning your loan is likely to be a high cost loan product.   Make sure you understand what it takes for you to get the best interest rate and term.   Consider saving money or improving your credit before applying for a loan.
• NEVER lie about your income to a loan officer, even if they suggest it is OK to do so.   Lying about your income - or any aspect of your financial history - is fraud, plain and simple.   Exaggerating your income on a "stated" income transaction can cause a lender to lend you more money than you can afford - making foreclosure almost inevitable.   In addition, mortgage fraud is a serious crime and any participants engaging in dishonest or fraudulent transactions can face criminal liability.
• NEVER sign papers you do not understand.   If you are unsure of what you are signing, seek legal advice or simply ask to take the papers with you and review them at your convenience.
• BE CAREFUL about "debt consolidation" loans.   Make sure you understand the costs of the loan, your monthly payment, your interest rate and how much you will owe in total after your loan closes.
• You are NOT obligated to "close" on a loan if the terms or conditions have changed from what you were initially promised.