The press, at the moment, has had numerous reports regarding the rate of foreclosures on properties where the owner has defaulted on repayments and can no longer be found.

Foreclosures are never happy affairs. I am not going to examine here why some things happen and how it is possible for a home owner to find themselves in a situation where losing the home they have strived so hard to purchase is a real possibility, because we all understand that sometimes bad luck strikes and it is possible for anyone to fall down.

What I am going to focus on instead is what you can do to pick yourself up from a situation like this and move on.

For anyone facing foreclosure, there are three choices available for moving out of the foreclosure zone:

1. Bring your repayments current. This means that you need to discuss with your lender what you can do and how in order to bring your repayments current. How understanding and patient your lender is prepared to be will depend on your credit history with them and the length of time you have been a client of theirs. The trick here is communication. Do not be afraid to explain your situation and your willingness to resolve it, and make sure you are reachable at all times.

2. Refinance. This is a tricky option because it means you will need to find a way to raise money when you are already strapped for cash. Refinancing is a complicated field in its own right but, broadly speaking, you will have the option of getting a loan. One option is by finding an understanding and wealthy friend willing to lend you money in return of getting some interest or raising another mortgage on your home. Which option you go for will depend on your personal circumstances, the expectation of finance you have, and what you think you are comfortable with in terms of repayments.

3. Sell up, pay back and move on. This is your final option. It means you will need to sell the home you own, use the money you get from the sale to pay back what you owe, and move on with your life debt free. There are a few things to think about here though. You need to be careful to see your credit history survives the debacle plus you don’t end up paying off one mortgage (if you have more than one) and then taking a default and ending up owing the other one with no means of paying it back.

The deal is that whichever option you choose to follow in order to move out of the default zone you will need to plan it carefully, understand your reasons why you are doing it and the options you have available, and all the possible consequences. Lastly, whatever option you decide to you with, make sure you focus on seeing it through.