How soon after I miss a house payment will the bank begin foreclosure proceedings?

This varies from state to state and lender to lender, but most lenders don't start foreclosure proceedings until you've missed four or five payments. Before taking back your house, most lenders would rather rewrite the loan, suspend principal payments for a while (have you pay interest only), reduce your payments, or even let you miss a few payments and spread them out over time.

If your loan is owned by one of the giant U.S. government mortgage holders, Fannie Mae or Freddie Mac, foreclosure could come even more slowly. Fannie Mae and Freddie Mac have been working with homeowners to avoid foreclosure when a loan is delinquent.

If your loan is insured by a federal agency, such as the Department of Housing and Urban Development (HUD) or the Federal Housing Administration (FHA), the lender may be required to try to assist you in preventing foreclosure.

If foreclosure is looming, might I be better off just selling my house?

You're better off selling the house than having it go to foreclosure. As a general rule, if you can find a buyer who will offer to pay at least what you owe your lender, take the offer. If the offer is for less than the amount you owe your lender, your lender can block the sale. But many lenders will agree to a "short sale," where the sale brings in less than you owe the lender and the lender agrees to forego the rest. Some lenders require documentation of any financial or medical hardship you are experiencing before agreeing to a short sale.

My utility bill was huge because of a very cold winter. Do I have to pay it all at once?

Maybe not. Many utility companies offer customers an amortization program. This means that if your bills are higher in certain months than others, the company averages your yearly bills so you can spread out the large bills. Also, if you are elderly, disabled, or have a low income, you may be eligible for reduced rates. Ask your utility company.

Can I go to jail for not paying my debts?

Debtors' prisons were eliminated in the United States by 1850. In a few unusual situations, however, you can still be jailed if you:

• willfully violate a court order, especially an order to pay child support
• are convicted of willfully refusing to pay income taxes, or
• are about to conceal yourself or your property to avoid paying a debt for which a creditor has a judgment against you.