If Foreclosure Looms

September 24, 2007

If, for whatever reason, you are wondering how you will make the next payment on your home loan, here are some steps that could be helpful.

1) Find a knowledgeable realtor, a housing counselor or a financial advisor and set up an appointment.

2) Be completely straightforward about your situation. (Why you are in a bind. How much you are in debt. What your future prospects may be.)

3) Call your loan servicer. (The company to which you make your monthly payments.) Ask for the "loss-mitigation" or "work-out" department and try to modify the loan terms.

4) Don't wait to do the above if you are not yet in trouble. Start now to find a solution.



It seems that a strategy some folks are using is to borrow money to pay the loan. Often credit cards are used which just puts you deeper in debt. I believe that over borrowing is what has created the credit crunch. I cannot believe that more borrowing will cure the crunch.



The government and the housing and financial markets are wanting you to keep your home. Use their expertise and find the solution that best fits your situation. This is no time to play head in the sand. This is the time to do something.