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Unfortunately the California foreclosure rate is extremely high and you need to understand how to deal with the banks and other agencies to prevent foreclosure and save your home. Below are a few basic guidelines to follow if you are on the verge of a California foreclosure.

1. Don't attempt to ignore the problem because you thinks it's too overwhelming. The more you get behind on your payments, the harder it will be to reinstate your loan and catch up which means you make it much more difficult to save your home.

2. Contact your lender as soon as possible and keep open lines of communication. The banks are not interested owning real estate and really want to help you save your home. They may have some viable solutions to help you in get through these tough financial times and avoid the California foreclosure process.

3. Open and respond to any and all mail correspondence you receive from the bank. The first thing you will receive in the mail will usually offer some good information about how you can avoid California foreclosure and may help you get through this difficult financial time. Other information you receive may include notices of pending legal action. Keep all of these documents together and remember that avoiding this information will only make it more difficult to save your home.

4. Know exactly what your rights are as it pertains to your mortgage and foreclosure in California. Find all of your loan documents and read through them carefully so that you understand what the bank may do if you can't make your payments. Learn about the California foreclosure laws and time lines. Contact your State Government Housing Office (because every state is different).

5. Understand the California foreclosure prevention options. Valuable information about California foreclosure prevention (also called loss mitigation) options can be found on the internet at www.fha.gov/foreclosure.

6. Prioritize your spending. Right after healthcare, the next priority is to save your home. Review your budget to see where you can cut costs in order to make your mortgage payment and avoid a foreclosure. Look closely at optional expenses like cable television, special memberships and other miscellaneous spending that you can eliminate. Delay payments on "unsecured" debt (like credit cards) until you have made your mortgage payment.

7. Make use of your assets to save your home. Do you have any valuable assets like a second car, additional furniture, a life insurance policy that you can sell quickly? Perhaps a garage sale or a second job could help you bring in extra money to cover your mortgage expense? Even if these efforts don't raise all the money you need to make your mortgage payment, they demonstrate to your lender that you are willing to make every effort to save your home from foreclosure.

8. Don't lose your house to California foreclosure recovery scams! If any firm claims they can save your home and stop a California foreclosure immediately if you sign a document appointing them to act on your behalf, you may well be signing over the title to your property and becoming a renter in your own home! Never sign a legal document without reading and understanding all the terms and getting professional advice from an attorney, a trusted California foreclosure professional, or real estate attorney.

Take heed to the advice above and use your common sense when making decisions about preventing a California foreclosure and attempting to save your home.