With millions of Americans currently being threatened of foreclosure, there is much speculation regarding the best ways homeowners can help avoid foreclosure. According to experts, being informed in itself is a very advantageous method of avoiding foreclosure. As a homeowner, especially one in danger of foreclosure, it is important to understand the process in its entirety: how it works, the governing laws, and of course, how to avoid it. In terms of specific steps that can be taken, the common actions to consider include negotiation, consulting with a government agency or lawyer, filing for bankruptcy, or loan modification. Generally speaking, each option has its own advantages and disadvantages, but depending on your case, they may be a positive alternative to foreclosure. However, its of the utmost importance to weight the impact of these options - for example, a lawyer can be expensive, bankruptcy can damage your credit, and loan modification may still be unaffordable.