Think it will be easier to let the bank have your home and start over? Why not? It is happening all over the country and to millions of people. Every one is placing the blame somewhere else, the reasons are many and the answers are few. You will be just one more among the many. Please, think again! Walking away may be the easiest or only option you think you have but it can have severe consequences not only for the future but can affect your situation immediately. After you lose your home, you will have to find a new place to live and too often the price for rent will be as much or more than the payment you are already making, if you can convince someone to rent to you. Most rental and leasing companies run credit checks. Plus there are rental deposits, (often higher if your credit is sketchy) utility transfers and other cost (monetary and mental) that are associated with moving.

Despite what you hear, most banks do not want to foreclose on your home. Banks are in the banking business, not repossession of homes. There are many reasons why banks do not want foreclosures on their books and foreclosure is usually the last option available to the lender to minimize their losses. Repossession involves investing extra personnel, hours, time and money that would be better utilized elsewhere. Most lenders are happy to hear that the homeowners are trying to find a way to keep their home rather than just let foreclosure happen. If you know there is going to be a problem contact your lender or when you fall behind on payments and receive notices from your lender, open and respond to the notices immediately. There may be some options open to you. Many borrowers can qualify for a new payment structure if they have had an increase in

cost-of-living expenses, medical expenses or a decrease in wages. This would allow you to repay the lender in a pre-set amount of time. This is called a special forbearance. Make sure you understand and can afford the terms.

Refinancing your loan to a more affordable payment might be another option. Talk your lender to find out what options are available to you. Making an effort to make your payments, working a temporary job, selling an asset, such as a car or jewelry will at least demonstrate that you want to keep your home and may help with the amount that you are behind.

There are short sales, (simply put) where you and your REALTOR, ask the bank, to receive from the sale of the home, less than what is owed. Again, make sure you understand all that is involved in this process. None of the processes are easy and may take time. This is your home isn’t it worth a little extra time and effort.

There are many sources available to homeowners but beware of scams. There are many legitimate businesses out there that will make many claims to work on your behalf. Check them out carefully!

You do not need to pay a fee for foreclosure prevention information to help you. There are for-profit businesses that will offer to provide information and services to you but if they can help at all, the fees are usually enormous and the information and help is free from HUD or your lender. Never sign a legal document to have someone else stop foreclosure immediately without understanding all the terms and conditions, or without first getting legal advice or counseling from an approved agency.

You may end up paying more and lose title to your property.

If you find yourself in a situation that may lead to foreclosure, act before it is to late. Your home is probably one of the greatest investments of your life. Why lose it if there is any way possible to keep it. Don’t be one of the millions of families that might lose their homes this year. For free help and information you can call the U.S. Department of Housing and Urban Development (HUD) 800-569-4287 for a list of approved counseling agencies.