The ongoing subprime meltdown will claim its next victims in October, when adjustable rate mortgages worth over $50 billion reset, but homeowners facing foreclosure can keep a roof over their head by following a few common-sense tips. Above all, don’t panic, and don’t ignore the problem – instead, try the following:

Reason With Your Lender: Ask and ye shall receive. Explain your situation, and ask for a lower or fixed rate, or more time to pay off the mortgage. As the subprime market implodes, lenders are trying harder than ever to retain paying customers.

Call A Counselor: Counselors can help delay foreclosure – sometimes for up to a year – but only if you give them ample time to negotiate with lenders.

Lawyer Up: As a last resort, a lawyer can help you file for Chapter 13 bankruptcy, which forces lenders to negotiate a payment plan. Lawyers can also help borrowers who had little chance of repaying truly outrageous loans sue the lender for violations of the Truth in Lending Act.

Be careful if you choose the legal route, as Chapter 13 can hurt your credit score, and a failed suit against a lender can put you further in debt by making you liable for attorney’s fees.

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