With the foreclosure rate steadily increasing across Minnesota, up 15% in April, and also rising in Crow Wing County there are now more programs in place to help. Your home is your most prized possession and if you are one of the many homeowners in Minnesota facing foreclosure you should know how the foreclosure process works and where to turn for help. Counselor's are free and confidential and can help you find a resolution. It highly recommended that you use a government sanctioned agency. Talk to your foreclosure counselor and lender about your situation. The lender will want to work with you. Banks often lose money in the foreclosure process so it is often in their best interest to help you figure out a workout plan for you. In Minnesota, homeowners usually will have six months to stay in the home which is followed by a sheriffs sale.

If you are facing foreclosure here are several tips:

1. When talking to financial services or lenders ask to be transferred to the loss mitigation department and document all calls and what was talked about. Get their extension so you can call them direct next time.

2. Whatever it is you talk about be completely honest. Tell the lender you want to work with them to keep your current mortgage

3. Check with your lender, see if they have any assistance programs for homeowners facing foreclosure.

4. If a resolution is found, request the document be sent to you, don't agree to anything until you have the hard copy.

5. Don't over extend yourself. Always make sure you don't enter into an agreement you will not be able to afford.

Check with your lender and a private tax preparer, see if you are eligible for mortgage debt forgiveness. In 2007, Congress changed the mortgage debt forgiveness laws. If you owe a debt to someone else and they forgive that debt, the canceled amount may be taxable.The mortgage debt forgiveness act does not include income from the removal of debt on their principal residence. Mortgage debt forgiven in connection with a foreclosure and debt reduced through mortgage restructuring qualifies for the relief.

Signs to watch out for:

1. Any cold calls. Especially those offering solutions and easy fixes.

2. Having to give out your social security number.

3. Having to pay for counseling.

4. Anything that sounds too good to be true.

This is in no way meant to serve as legal advice. If you are facing foreclosure please contact a Minnesota foreclosure counselor or the Lutheran Social Services. They can help you create a budget, payment plans, even help coordinate your transition after a foreclosure. LSS have certified counselors and provide many services useful to anyone who could use help getting their finances in order.