Foreclosure help now

President Bush signed the housing bill into law this morning. The part of the legislation that allows homeowners to refinance into government-backed loans may be available in October, but there's been some question as to whether it's going to take longer than that. If you are in danger of foreclosing on your home-there are some steps you can take now.

1) Before missing a payment
Once you miss a payment, your lender likely reports that to the credit bureaus. Your credit score will go down and you'll be hit with late fees. After 90 to 150 days in most cases, your lender may file a notice of default with a local courthouse. If you don't become current on your payments, you may have anywhere from 2-3 months to a year before the house is put on the auction block.

2) Get a loan modification
This is basically a change in loan terms. A modification will lower your monthly mortgage payment or let you skip a few payments. To request a modification, call your lender and ask to be transferred to the loan modification–or loss mitigation department. Make sure you have some recent pay stubs, current or prior year W-2 forms, bank statements, property tax bills and insurance bills. Be persistant. The process can be frustrating. It could take weeks.

3) Consider a short sale
If you owe a lot more on your home that it's worth, you may be able to get the lender to accept less than you owe on it by negotiating a short sale. Basically you sell the house for what you can get and the lender agrees to accept it. Sometimes the deficit is forgiven, but you may have to sign an unsecured loan for the amount.

For more of Gerri's Top Tips, watch CNN weekdays at 10:15 am Eastern Time.