Some homeowners are facing a choice: struggle to make ends meet, and incur more debt to avoid defaulting on their real estate financing, or walk away and lose what they’ve already invested. It’s best, of course, to avoid full-blown foreclosure. If you can’t, there’s not really a decision to be made. Whether you eventually keep the home or give it up, communication with your lender during the entire process is key.

If you’re having difficulty paying your mortgage and don’t see a long-term solution, contact the bank. They are likely to help you review your loan and finances and find a way to make your situation more tenable. Unless you have time to wait for the house to sell, cutting costs to pay your mortgage is probably best. Thanks to low prices and a stagnating market, banks are more unwilling to take on ownership. This makes walking away harder, but it also makes them more willing to help you remain in your home.