by Vickie Cortes

Created on: March 06, 2009

The harsh reality of foreclosure can loom at anyone's doorstep. For numerous reasons people are unable to make ends meet. If you are in danger of falling behind on your mortgage payment or you are currently delinquent. It is important to know what steps need to be taken and what options are available. You need to take action quickly.

The most important step to saving your home is Communication. Contact your lender immediately upon realizing that you are going to be late on a payment or you are unable to make your payment. Do not wait until the payment is already late or worse yet more than one payment past due.

For most people making the initial phone call is the hardest thing to do. Maybe you are embarrassed or scared. What ever the reason is people tend to want to avoid the phone call altogether. Don't! The person on the other end of the telephone is just that a person. They are not going to yell at you, nor are they going to criticize you. In fact they are going to appreciate that you are responsible and care enough to save your home and fulfill your obligation to pay the loan.

Your lender will want to help find a solution that will work for you so you can stay in your home and continue to pay your mortgage. The last thing your lender wants is your home. Let's face it, if lenders wanted to own homes they would be in the home buying business not the loan business. The interest they make on the money they lent to you is much more valuable to them than the foreclosing on your home. In fact it costs a lender a ton of money when a loan goes bad.

You must asses your situation by taking financial inventory. Gather all of your bills and write the monthly amounts down. Include on this list any money you spend on groceries, going out to eat, gas, even that cup of coffee you grab on your way to work. Calculate what you are paying out monthly. You need to be equipped with a clear understanding of where your money is going. Knowing this before you call your lender will better help you negotiate with them.

If you have lost your job or have been injured, be honest with the lender. What ever your situation is know that when you talk to the lender they are going to ask you how soon it will be before you will be back to work. If you are not going back to work for the same employer, what plans do you have to earn an income. If you tell them finding a new job is hopeless there is a good chance they are not going to be anxious to work with you. However, if you know the situation

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