Losing a home can be financially devastating as your home is most likely your greatest and most reliable asset. Financial problems associated with job loss, a cut back in work hours, illness, injury or divorce can in many cases not be avoided. If you are experiencing money problems, try to take a look at how much money you earn and determine what kind of expenditures you can cut back on to help make meeting your monthly mortgage payment more feasible.

If you still are having trouble making ends meet, it is important to take action right away to help protect you against the loss of your home. In many cases, lenders will be more willing to work with you if you are only 1 or 2 payments behind.

You will 1st want to contact you current mortgage lender and let them know that you are having a problem. In many cases your lender will advantageously work with you until you get back on your feet. REMEMBER, your mortgage company does not want to foreclose on your home. When a lender forecloses on a home they almost always lose money, they are in the business of lending money not obtaining real estate.

When you call your lender make sure you have your loan number or account number, recent income documents, a brief explanation of your adverse circumstances, tax returns and an itemized list of household expenses. You can expect to be in communication with your lender numerous times before an agreement is made. Your lender will most likely send you a "Loan Workout Package" that you will fill out and send back to them helping your lender determine a "next step."

You may qualify for a LOAN MODIFICATION if the reasons for your adverse situation are due to an abrupt change in your interest rate, under-disclosure of information when you obtained the loan, a fixed rate that turned adjustable or even a higher than average interest rate. Ask your lender to go through the loan modification qualification process with you as this alone can help you get a better mortgage, a lower monthly payment and cost you nothing!

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