Foreclosure rates have been on the rise lately. If you find that you are having trouble making ends meet, what can you do?

There are many homeowners that find they can no longer afford their mortgage payments. It may be due to illness, job loss or a death in the family. Others have adjustable-rate mortgages that have adjusted upwards to an unaffordable amount.

The best way to avoid foreclosure is to avoid the circumstances that bring it on. Too much debt, adjustable or exotic mortgages, little to no emergency savings and lack of insurance can often make foreclosure more likely. Stretching to buy an expensive home is also a large risk.

But the fact is, no one knows the future. You can make the right decisions and still face losing your home due to facts outside of your control. It happens. If you find that you are having trouble making your mortgage payments and are risking defaulting on your loan, you need to take action right now.

The key is to keep an open discussion going between yourself and your lenders. Take action immediately. If you think you are going to be late on a mortgage payment, contact your mortgage company immediately. Don't let them just wonder what happened to you.

In many cases, your lender will be more than willing to discuss your financial options with you. Lenders do not want to foreclose on properties. It costs them money and drives down the home values in the area around your property.

Get your bills and debts together. Form a budget and a plan of action. If you need to notify all of your lenders, do it. Let them know you are having financial problems, but fully plan on paying all of your debts and bills. Many will be willing to work with you on a plan of payment. Don't just write checks hoping that they will be covered. The late fees and bounced check fees can cost you a lot.

Protect your credit score if you are able. You don't want this one crisis to hurt you for years to come. Make your payments on time, or according to new agreement. Once you have an agreement with a lender, stick with it. If you default on this second chance, you will probably be called to task for it.

Don't get desperate and look for the first help that comes along. There are a lot of predatory lenders out there looking for the desperate. Before you sign any paperwork dealing with your home, have your lawyer or mortgage company check it out.

Don't just sit back and wait for things to get better. Take action. Doing nothing gets you nothing. You can avoid foreclosure if you put a little effort into it. Start saving and getting yourself back on track. If you can't afford the home you have, sell it and buy one that you can afford. Don't let your pride keep your from starting over. A fresh start in a new place is better than staying in a place that is draining you, financially and mentally.