Around the country, state and local legislators are considering foreclosure moratoriums for homeowners facing foreclosure . We all know that homeowners facing foreclosure need more time than they’ve been given to put their financial house in order and save their homes; but that’s not all they need. Oftentimes foreclosure moratoriums end up only delaying the inevitable foreclosure because once given more time many homeowners don’t have the information or tools necessary to take the critical steps needed to save their homes.

When a state or local government issues a foreclosure moratorium, there should be a plan already in place to help vulnerable homeowners act quickly to save their homes. The first step in the plan should be providing every homeowner with information about their options. The legislative bodies issuing the foreclosure moratorium should have that information disseminated through the mortgage companies as part of the homeowner’s monthly bill/statement.

The second part of the plan should be to evaluate each homeowner facing foreclosure to figure out which option is best for their situation. If someone is only slightly behind in their mortgage payments, has a steady income, very little debt, and is only having trouble because of a toxic mortgage, issuing a new and affordable loan for this homeowner may be the best option.

On the other hand, if a homeowner has little or no income, is severely delinquent in paying their mortgage and has large amounts of other debt, bankruptcy may be their best option. Whatever option homeowners facing foreclosure chose, it is important that they know all of their options and are given enough time to take action.