There are many reasons homeowners get behind on their mortgages. The number is increasing every year.

Many people simply have too much debt. Others have emergencies and job losses. The worst thing they can do is not call their lender. They think that maybe it will go unnoticed or simply ride for a while.

That is the worst thing you can do. If you want the best repayment terms and protection for your credit report, you need to make a call.

Lenders are just as eager as homeowners to avoid foreclosure. Foreclosure costs lenders up to $60,000 per house, according to industry estimates. Most lenders couter this by offering programs that work with the borrower on repayment plans, often referred to as a "workout."

"Going to the lender is ideal. The sooner, the better," says Erica Sandberg, a spokesperson with the Consumer Credit Counseling Service.

However, up to half of all borrowers are afraid of telling a lender they are having money problems. Many actually think that this will accelerate foreclosure.

With adjustable-rate mortgages making up an increasing portion of the mortgage-loan market, and set for massive resets in the next two years, foreclosure activity is expected to increase.

"While foreclosure activity continues to remain slightly below historical averages, the number of properties in some stage of foreclosure from January to July has increased by 39% compared to the same period of 2005," explained James Saccacio, chief executive officer of RealtyTrac.

The Mortgage Bankers Association reported first-qyarter delinquency and foreclosure rates wthat were essentially flat, remaining only a small portion of the overall loan market. But there has been a slight increase in late payment amoung subprime borrowers.

There were 12.02% of borrowers with subprime credit delinquent in the first quarter, up from 10.25% one year earlier.

Many homeowners have no idea that their ARMs are going to reset by such an increase, say experts. When people see their payment almost double, they have a hard time understanding what they should do next.

The first call should be to the lender, say industry experts. Only the lender can help work out a payment plan that will fit both the borrower and the lender.