Payments During Foreclosure

As you know, foreclosures are rising in the U.S. quickly; people who finally got a mortgage a few years ago are now facing perilous times. Imagine - foreclosures were up 93% this July 2007 over the same period a year ago according to RealtyTrac. They claim this was because of the home market that has gone soft and because there are so many of those sub-prime mortgages - those adjustable-rates that ballooned to un-affordable rates.

This happened, and if you are victim you can attest, some mortgage agent promised you that you could refinance at a lower rate than the high balloon mortgage rate - right?

Made worse for homeowners who have lost their jobs or have unexpected medical bills - anything that curtails your income - you start falling behind on your mortgage payments. And it doesn't get better. These will lose their home, then get a black mark on their credit - messing up their ability to even rent a place in the future.

If you're in that position, listen up.

Don't wait at all when you know you're in trouble. Don't wait until you're behind on your mortgage payment. Next thing - and I know you're going hate doing this - but you must tell your mortgage company what's going on with you. They'll just assume you don't want to pay and will come after you with with a collector.

Okay, now that you have a problem, sit down and write out a plan. How are you going to manage? If you can't manage on the money you are making - maybe you bit off more house than you can chew.

Your next steps are increasing your income. Get more skills, rent out one of your rooms, but don't take smaller jobs - you won't make it. Cut expenses now. Cut off stuff you normally lived with. Work it out step by step - you'll be fine if you plan, plan, plan.