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This is probably a very obvious statement, but if you are a distressed homeowner and are having trouble paying your mortgage, call your lender and let them know. The lender has a huge interest in keeping your home out of foreclosure also, as the typical foreclosure costs a bank $59,000.

So it is in the banks best interest to work out any issues that you may be having to keep the home out of foreclosure. Unfortunately though, more than half of the people who end up losing their home in foreclosure never contact the bank or lenders about their problems.

“Let the bank know as soon as you know your payment will be late. They adopt a very different attitude if they know the facts and (know) that the owner is not trying to skip out,” says Colleen Hernandez, executive director for the Homeownership Preservation Foundation, which provides free counseling.
Calls to her foundation’s 24-hour hotline have shot up 61 percent since January. Difficult cases are referred to credit counselors affiliated with NeighborWorks America, a nonprofit organization. The organization works with counselors in all 50 states (www.nw.org).
“There is a huge myth out there that financial institutions want to take the property back, that that is their real intention,” says Marietta Rodriguez, interim director of the NeighborWorks Center for Foreclosure Solutions.
In fact, foreclosing on a home, then reselling it, costs a lender almost $59,000 on average, according to Freddie Mac. via the Lansing State Journal

Many people have gotten into homes and loans that they will not be able to afford in the past few years. But the odds of the deck are not stacked against you as much as you would think. Like most things in life, be proactive and meet the challenges head on. Odds are the situation is not nearly as bad as you think, and you are not the first to have to fight these battles.

Related posts:

1. 6 US Lenders Offer Project Lifeline To Homeowners in Foreclosure
2. Indiana Offering Free Foreclosure Counseling For Homeowners in Financial Trouble
3. Outside The Box Marketing - The Foreclosure Bus Tour
4. Sign of the Times - The Foreclosure Dog
5. Speaker of House Nancy Pelosi Says 1 in 20 California Homeowners Will Be in Foreclosure