Behind on Mortgage - Foreclosure Looming

The people that keep an eye on the mortgage and home lending business say that a million homes will be likely candidates for foreclosure this year. That's up 30 percent from 2006. And more and more people are getting behind on their mortgage or house payments. Scams have arisen, too, making things worse.

What to Do

First of all, when you feel you have a problem with that upcoming payment - you don't see how that you're going to have the money - contact the lender. Most all that we know and have dealt with want to help you keep your house.

Next, if you do get any piece of mail from your mortgage company regarding your loan or that your payment is late; answer them promptly. Don't get discouraged and just shut down. The lender has no idea what's going on. You just have to communicate. Later, when things get worse, the legal notices start appearing, and you just don't want that to happen.

Dig out your loan papers and start reading. Many of the clauses that you'll be dealing with if you are behind on your mortgage or home payments is right there in the documents. Use the Internet to find out about foreclosure laws in your state. Each state is a little different, so try not to let an uncle or friend living in another state tell you what will happen.

Get your spending in order. This means to put money where it needs to be by priority. First should come health care. Next, should really be your mortgage. Keeping your home should come right after keeping your health. This means paying your mortgage at the expense of your credit card debt.

Our website here looks at so many options, but one thing you will never find here are "foreclosure prevention kits" or promotion of any fee based companies where they say they'll help you if you pay them first. Avoid these scams. Don't sign anything from anyone claiming they will stop your foreclosure. There's a scam now called "equity skimming" where a buyer will offer to repay your mortgage if you sign over your deed and move out. Of course you're left with the debt and he has the house.

Finally, get help with the Housing and Urban Development arm of the US Government. HUD offers low-cost and many times "free" counselors and great information on avoiding foreclosure. Call 1-800-569-4287 to seek a counselor in your area.