Steps that can head off foreclosure.

• Position: Financial planning

Homeowners on the cusp of foreclosure due to subprime loans need to evaluate their options immediately, and not wait for a foreclosure notice before taking action, advises Nicholas Nicolette, president of the Financial Planning Association, Denver, Colo.

In fact, Federal Reserve Chair Ben Bernanke and Treasury Secretary Henry Paulson have warned that the mortgage crises faced by thousands of homeowners is not going to go away any time soon and actually may deepen over the coming year. "They now have made it quite clear that this mortgage mess is going to be with us for a while," underscores Nicolette. "When the Fed chairman and the Treasury Secretary have the same message ... it's time for some homeowners to start evaluating options."

FPA is advising homeowners who are caught up in the subprime mortgage crisis to think twice about their choices when trying to hang onto a house that may drag down their entire financial future. "There are options to consider. You can look into whether you can convert your adjustable rate mortgage into a fixed interest rate mortgage or one with a more affordable payment schedule but, if there are not viable options to choose, allow me to say that which nobody wants to hear: If that house you bought with an ARM is increasingly putting a squeeze on your effort to save for retirement or money you are setting aside for your children's college education, you may want to consider selling the house, even if it means taking a loss," declares Nicolette.

Over the next two years, nearly 2,000,000 people could lose their homes to foreclosure. Nicolette indicates that, if people crunched the numbers, they quickly might see that carrying an expensive mortgage payment every month can put them into dire straits for years to come, and tie up what experts call "liquidity," leading to borrowing by credit card and abandonment of a monthly saving regimen.

"It's too easy for...