In many states, there will be 50% more foreclosures this year than last. And, 2007 was a record year.

But foreclosure itself is something that happens toward the end of the steps of foreclosure. In between, many homeowners are able to rescue their homes.

This is your guide to the steps of foreclosure

First, if you fail to make a mortgage payment or two, you are in danger of facing foreclosure.

People can fail to make mortgage payments for a variety of reasons. Historically, some reasons for missing mortgage payments have included major medical problems, lost job, and family emergencies have been the reason for most mortgage failures.

But in the last year or so, the number one reason for homeowners not making their mortgage payments have been exploding adjustable rate mortgage rates.

The next step is for the lender to send out a Notice of Default. The NOD gives you official notice that the legal proceedings have started.

When you get a NOD, you need to call with the lender right away. Open up the lines of communication. In this manner, when you move on to step three, you have a good chance of actually saving your home.

Third, you have a period of time – anywhere from 45 to 180 days to make up the deficiency. You can make up the deficiency in a number of ways:

1. Pay off the debt
2. Arrange for a short sale
3. Discuss the possibility with the lender of a Deed in Lieu of Foreclosure
4. Sell the house if it’s worth more than you owe
5. Renegotiate mortgage

If you are able to make up the debt, your problem goes away.

If not, it’s on to the next step: foreclosure. This is the legal taking of the house. In some states, this is through Judicial means while other states have non-judicial formats.

Now, the next step is to have a Sheriff’s Auction. The sheriff will auction off the home on the steps of the county courthouse. Generally, the bank buys the property for $1 over the amount of the debt, but sometimes investors get involved.

In most states, the sixth step is to offer the original homeowner the option of buying the home back from whoever won the auction. This is known as the redemption period.

If you are looking to rescue your home from foreclosure, it is useful to know what the steps of foreclosure are and what you should be doing during each one. That way, you won’t be another number in 2008.