Foreclosures are on the rise, but options exist for homeowners to avoid foreclosure and get back on track financially.

“The best way to avoid foreclosure is not to put yourself into the position of a home that you can’t afford,” advises Chuck Stansbury, a mortgage specialist with Alliance Mortgage Professionals. Stansbury also is a Realtor with CENTURY 21 Kern Realty.

Linda Melucci, a mortgage specialist with Countrywide Financial Corporation, said many “people were put in the wrong product.”

While sub prime and jumbo mortgage loans are drying up, there is plenty of cash flowing to borrowers with stellar credit who want conventional fixed-rate mortgages.

Assistance for first time homebuyers continues to be available, said Mary Ann Michaels, a Realtor with MCO Realty. The program offers a 6.55 percent mortgage rate with a 5 percent non-repayable grant for down payment and closing cost assistance.

Approximately $40 million is available to lenders on a first-come, first-served basis, said Michaels. Income requirements must be met and the prospective buyers must have a FICA credit score of at least 650.

Sale price of the homes must be under $340,000. Michaels said about 265 Fountain Hills MLS listings could qualify for the program.

Many homeowners don't understand the foreclosure process or what their options are. They are further confused by repeated harassing phone calls from their lender and a barrage of mail, phone calls and even predators knocking on their door trying to get them to sell their home for pennies on the dollar, said Bonny Puckett, a Realtor specializing in foreclosure processes.

Puckett of Call Realty maintains a Web site at www.azforeclosureprevention.com, where she informs homeowners about the process and provides options to prevent foreclosure.

Foreclosure is a legal process by which a lender forces the sale of a property, relieving the homeowner of any and all rights, title and interest.

The most common type of foreclosure in Arizona is non-judicial foreclosure. This type of foreclosure is fairly quick with no judicial proceedings taking place.

In Fountain Hills at the beginning of October, 49 properties were scheduled for foreclosure auction, according to data compiled by Puckett.

The 49 properties breakdown to 32 single-family residences, 4 multi-family units and 13 condominiums. The original note amounts for the properties range from $50,100 to $2 million.

Between August and October, three lender-owned properties sold for prices ranging from $179,000 to $970,000.

Foreclosed homes can decrease the property value of nearby homes. The loss of property taxes affects schools, town and county governments.

Nine properties in Fountain Hills are listed on the Multiple Listing Service (MLS) for short sale at list prices from $299,000 to $1,550,000. Two of them are also included in the 49 scheduled for foreclosure auction, said Puckett.

“You don't have to be the victim. You can take control,” said Puckett.

She provides free special reports to help homeowners better understand the challenges they face as a homeowner in pre-foreclosure as well as what options are available to help stop foreclosure and prevent a home from being sold at foreclosure auction.