pramod asked: One of the biggest mistakes homeowners often commit is that they try to hide their ailing financial status from others, including the lender. It is important to highlight the fact that foreclosure proceedings are an expensive initiative for lenders and given a chance, they'll always be keen to avoid it themselves. So, the very first thing a financially distressed homeowner needs to do is to appraise the lender of the situation and seek assistance. Before contacting the lender, a true, unbiased assessment of one's financial state and income must be made - this shall ensure that the loan modification arrangement is based on a firm foundation and the homeowner shall not default even after loan modification. Such financial analysis can also be sought free of cost from a nonprofit counseling service. Some [+]