Yesterday, I posted the mortgage news that about 2 million foreclosures are expected by 2009. Today we will take a brief look at some of the steps you can take to increase your chances of avoiding foreclosure.

Refinance. This is the first option many people think of. And it can be a good one, if your equity is as it should be, and if you have good credit. Refinancing to a fixed rate can be a good way to avoid the hassles of a mortgage reset. However, remember that a mortgage refinance is a completely new loan, and some people may not be able to refinance to a second mortgage.

Adjust your budget. It is important that you prepare for the change in mortgage payment. Start now to adjust your budget, cutting unnecessary expenses and saving more money.

Talk to your mortgage lender. There are options that involving walking away from your home. This is no fun, but if nothing else is going to work, you can speak with your lender about short selling, or a deed in lieu of foreclosure.