BOSTON -- What's worse than living paycheck to paycheck? Outspending your paycheck every month on basic expenses --- most especially, your mortgage payment.

Foreclosure petitions have jumped 76 percent in the past 12 months. And if you're worried that foreclosure is in your future, Susan Wornick reports, the time to act is now.

"It weighs a lot because no one wants to lose their home," said Bob Smith, a Plymouth homeowner.

Smith and his wife, Debbie, are like a lot of people. They refinanced their mortgage to an adjustable when the rates were low, but now that their adjustable rate is about to jump, Debbie said she's scared.

"I mean, if interest rates go up, I am afraid we are going to lose the house," Debbie Smith said.

And with the housing market softening, it's a huge problem for thousands of homeowners who can no longer afford their mortgages. But you do have options.

First of all, call your lender as soon as you foresee a problem.

"The worst thing is to ignore everything that is going on," said Ed McCarthy, a real estate attorney. "It's like putting an ostrich's head in the sand and maybe, by some miracle, it will go away or be resolved."

Depending on your circumstances, you may be able to arrange an alternative repayment plan with your lender. Banks don't want to foreclose.

"No one makes money, no one is happy, no one wins in that type of situation," said Charles N. Nilsen, regional vice president of J.P. Morgan Chase Home Finance. "Lenders are not real estate brokers, nor do they want to be."

OPTION 2: Try selling your house. If you discover it isn't worth as much as you owe, ask your lender about what they call a short sale. That's when the lender agrees to accept less than what you owe.

"It's better than nothing," McCarthy said. "If the lender gets paid and they're able to deal with it and the people are able to walk away with a fresh start, I think it works out for everybody."

But the downside to a short sale? It could stay on your credit report for seven years as a black mark. And you may have to report the unpaid balance as income to the IRS.

OPTION 3: If all else fails, consider Chapter 13 bankruptcy as a short-term solution to re-organize your debt.

"It still requires that the secured debt -- something like a car loan that has a lien on the car or a house with a mortgage on it -- still has to get paid in full," McCarthy said. "But you're given up to five years to make up the shortfall of the six months, nine months you may have missed before you filed for bankruptcy."

Even if nothing else works, and foreclosure is imminent, you'll likely have nearly a year to regroup.

"It's not a short process," McCarthy said. "It's not like you missed two payments and you're on the street with your family. There's definitely time to consider your options, speak to your attorney, speak to your bank."

Bob and Debbie Smith have appealed to their lender, Avelo Mortgage of Dallas, so far to no avail. But they're not giving up.

"All I want is a modification to lower the interest rate," Bob Smith said. "You lower the interest rate, it makes it easier for me to pay. That's all I'm asking."

We too called Avelo Mortgage to ask for their policy about working with homeowners, but so far, have been unable to get any answers. And that's part of the frustration. There are no laws requiring a lender to work with you.

Also, if you're in trouble, don't believe anyone promising a quick and easy rescue.