Buyers are finding it harder to obtain home loans as lenders tighten their credit standards or even go out of business.

Homeowners with adjustable-rate mortgages (ARMs) face a double whammy. House prices are falling even as their monthly home payments adjust upward in a big way. So when ARMs reset, many may find they can neither make their payments nor sell the house for enough money to cover the loan.

With October identified as a peak month for such scheduled resets, can this group of homeowners escape from this mortgage mess?

Perhaps.

Today's credit environment certainly isn't as easy as it was a few years ago, when lenders often made loans that put themselves and home buyers at higher risk. Back then, as home prices rose, so did the popularity of loans with "teaser" interest rates that lasted only a couple of years. Subprime lending soared as lenders issued riskier loans, ignoring the elevated danger of default.

Now homeowners faced with the prospect of home loans resetting sharply higher are seeking solutions. Often what's needed is patience, persistence and a willingness to seek help.

Housing experts say people faced with possible foreclosure, or a big upward reset in what they owe on an ARM, might consider this advice:

Know the value of your home. Selling probably isn't your first choice, but it's important to know whether the house could be sold for enough to pay off the loan, plus closing costs. Check out the online house evaluation on my web site. 

Consider refinancing. If your credit is poor, refinancing may not be possible or will carry big fees, but if a deal sounds good, get an estimate in writing. You can consider whether the offer is worthwhile by using an online calculator such as Financial Calculators (look under "Home & Mortgage").

Talk to your lender. Troubled homeowners may want to run and hide, and lenders may seem unresponsive, but "the longer you wait, the fewer options you have for a workout," says Ren Essene of Harvard University's Joint Center for Housing Studies. Keep records of when you called and whom you talked to.

Seek a loan-modification deal. If you're heading into default, ask to speak with someone in your mortgage lender's "loss mitigation" department. This individual generally has the authority to set new terms for your loan to avoid foreclosure. "Lenders will often ask for good-faith money toward a modification," so hoard cash if you can, says Michele Rodriguez Taylor of NTIC.

Get help. Some nonprofit groups can serve as a go-between with the lender or can offer advice about your options. A nationwide HOPE Hotline (888-995-4673), run by the Homeownership Preservation Foundation, offers counseling. Through the group Neighborworks, it provides referrals to local organizations that can act on your behalf. Some states have set up rescue funds for homeowners. The federal Department of Housing and Urban Development offers links to community groups, among other aids, on its Web site.

Beware of "rescue" scams. If someone calls out of the blue and offers to repay your loan if you sign the deed to them or asks for lots of money to help you stay in your home, hang up.

Selling may be best. "Consumers will do everything to keep their home, even if it's irrational," Essene says. Some refinance multiple times, draining their equity in the home, and still can't afford to keep it. They would have been better off selling sooner, she says.

Choose the lesser of evils. Foreclosure is generally the worst outcome for homeowners, blackening their creditworthiness for years to come. For families on the brink, some alternatives include a "deed in lieu of foreclosure" transfer of ownership to the lender. In other cases, the lender may let you sell the home for a value that won't fully pay off the loan.

Amid these troubles, it's important to keep the challenge in perspective. The current housing market, financial experts say, is tough for just about everyone.

"It's become tighter across the board" for borrowers, says Celia Chen, who tracks housing issues at Moody's Economy.com in West Chester, Pa. "There are few subprime loans being written. [But] for someone who has built up equity and is a prime borrower, they'll still be able to refinance."

Tips for mortgage shoppers

If you’re looking to buy a home, loans are available -- but new terms and conditions apply. Down payments are in. Mortgage approvals without documentation are out. Despite the downward spiral of lenders who financed high-risk borrowers, prime "conforming" loans (less than $417,000) still are available, says Holden Lewis, a senior reporter at Bankrate.com, which tracks credit markets. But jumbo loans (more than $417,000) now carry higher interest rates than they did a month ago, he says, and lenders require down payments of 5 percent or more.

Financial experts offer this advice:

• Educate yourself. Community-action groups often provide free buyer-education seminars. Visit Web sites of government housing agencies, especially www.hud.gov, for guidance.

• Patch up any credit problems. For people with credit scores below 620, "there are very few options," says Chen.

• Shop around. This is especially true now. If an online mortgage lender can’t help you, maybe your local bank can.

• Think realistically. With home prices under downward pressure, don’t count on rising values to outpace your interest costs.