To stop foreclosure, you need to communicate.
This is actually true of any past due bill, not just your mortgage. But in the case of your mortgage, as anxious as you are, to NOT call them, you MUST call them in order to stop foreclosure proceedings. They are not going to yell at you!
We all know this does not happen overnight, but if your hours have been cut back at work, or worse, you are laid off, then you have to take action before you start missing mortgage payments. You are the only one, who knows where you stand with your finances. The bank doesn't know, they only know when you start missing payments.
The first thing you need to do, is really sit down and take a look at your finances and your budget. Are you going to be in trouble because your mortgage payment is going higher? or because of lack of income?
Can you possible rent a room out in your home for extra income? This doesn't mean totally renovate the place for an apartment, more of a room and board situation? Are you in a town with university or college? Could you move your household around enough to rent out a room to a student?
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Stay in Contact with the Lender
As much as you just want to hide from them, silence means you don't care. So if you keep in touch with your lender and let them know all the ways you are trying to fix this, it will possibly extend the time they allow you. They would rather deal with you than have to evict you and that expense.
Is there any other way to bring in extra income? Can you sell off any items, and liquidate things you don't need? Can you pick up an extra job, cleaning houses, or apartments?, or doing the books for a local business. (After a illness and job loss myself, doing books for people became my way back to the working world. I am a bookkeeper full time now). I myself was surprised how many small businesses, don't like to do paperwork, and with programs like simply accounting or quick books, you can easily do this for extra money.
Is there anything is your monthly budget, that you can give up to help this situation right now? Cable? Fees for activities? Sell off an extra car?
If you have tried all of the above, and you know you are going to be in trouble, or you have to make the choice between eating and your mortgage payment, then it is time to talk to your lender.
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Haul out your original loan or mortgage agreement, and phone them up and ask to speak to someone. You need to talk to someone in person, and someone in charge, because once you start missing payments, the computers start generating all kinds of papers that go above your local branch all the way to head offices, which can be much harder to control.
Talk to someone in person, preferably before you miss any payments, and see if you can work out any deal. Maybe you can go to a "interest only" if you really want to keep your house, and just need to get back on your feet. Keep in mind, that interest only, does not pay off anything, it just keeps your head above water, but could give you that breathing room you need for now, and keep your credit score in tack.
You maybe able to extend the time on your mortgage, which will lower the payment. When you get back on your feet, you can change it back, so that it does not take 40 years to pay off!.
Your lender may let you skip a payment or two, but they can only do that before you start missing them on your own!
Most lenders are not in the real estate business, they don't want to be stuck with yet another empty house that pays them nothing. They would rather have you in it, paying something. But if you leave all of this up to the computers, you will trigger foreclosure, sometimes without even talking to a real live person, then it can be too late to reverse!
If you bury your head in the sand, and just keep missing payments, then you will not have any leg to stand on, when you finally talk to them. They will tell you it is now out of their hands and in the hands of lawyers.
It is much easier to deal with this at the local level before any of this starts. You know yourself, whether you are going to start missing payments, so talk to them now, and stop foreclosure.
If you want to keep your house, and your credit rating, then deal with it. Ignoring mail, and notices, will not makes things easier. They will assume you do not want to talk and then there is no wiggle room what so ever.
So, before you throw in the towel, pick up the phone, make an appointment, and show them the budget you have been trying to make, explain the situation, yours will not be unique, this is going on all over the place. Do not be humiliated, this is life, and you can work something out with them to stop foreclosure.