With the huge number of homeowners facing foreclosure, it is true that your lender does not want your home. In fact, mortgage lenders are also victims in this crisis (believe it or not) as well. Your problem has become their problem!
With 8 homes in every 1000 currently in foreclosure (and many, many more on their way), banks are in no hurry to take your home. They will run themselves out of business if they were to take back the homes of all their high risk mortgages. Most lenders are willing and eager to find a way to keep you in your home. The key is to act sooner rather than later so you have as many options available to you as possible. Don’t let fear keep you from contacting your lender to see if there is a workout plan available to you.
Homeowners who have one big mortgage payment and 5 smaller credit card bills make the mistake of sending in money to these credit card companies and others. After all, if there are six people calling and demanding money, making five happy means fewer calls for you and fewer headaches in the short run.
In the long run, this is a critical mistake!
At some point you will need some money to save your home. Many options exist to stop a foreclosure; but they all require at least one month’s mortgage payment.
So start saving some money for your lender. After all, if you stop making your credit card payments, they give you a bad entry on your credit report. If you can’t work out a loan program with your lender, they will take your home.