sunbeam Even though the Federal Housing Finance Agency has come up with a plan to help millions of homeowners from losing their homes to foreclosure by working out new payment terms, there are still many people out there who will simply not qualify for this assistance. If you are finding yourself in this predicament, there are some things you can do to improve your situation. The first thing that you can do is call a good credit counseling agency. They will have expert advice on options other than foreclosure. Two excellent sources of information are the Department of Housing and Urban Development , which can put you into contact with low-cost or free counselors, and the non-profit National Foundation for Credit Counseling which can help you find members near to you. You may also want to give your lender a call to try and work out a payment arrangement that works better for you. To raise cash, you might want to consider renting out a room in your home if it is legal in your area, or you might ask relatives for financial help, or even find a second job. If necessary you might consider a short sale, which is when a lender will accept less than what is due on the loan. In this instance you will avoid foreclosure, but you risk the possibility of having to pay taxes on the short. Another option is to transfer your title in exchange for the cancellation of your debt, otherwise known as a “deed in lieu of foreclosure”. You will lose your equity, but you will not damage your credit. Lastly, you might consider bankruptcy. This will stain your credit for a decade, but you may be able to work out a deal with your lender that enables you to keep your home. Contact the Department of Justice for more information on bankruptcy.