| The first thing you need to do when you fall | | | | options can increase. If your mortgage is insured |
| behind on your mortgage is to inform your lender. | | | | by the Federal Housing Administration, you may |
| With the help of a new plan, your lender may be | | | | qualify for an interest-free and payment-free loan |
| able to give you time to catch up on your | | | | to get the mortgage current. You need not repay |
| payments. The lender's priority is to get back | | | | the loan until the mortgage is paid off or the |
| their money, not your home. | | | | house is sold. |
| A pre-foreclosure is a sale that doesn't cover all | | | | Check your refinance options and make a |
| of a loan's costs. The lender may agree to a | | | | spending plan for the next several months, |
| pre-foreclosure because it will let them avoid the | | | | including expected income and expenses. Free up |
| cost and hassle of going through with a formal | | | | as much money as possible for home payments. |
| foreclosure process. The lender may also be willing | | | | For other debts, you can pay the minimums or |
| to give you special forbearance that will suspend | | | | even less. If you feel that you can make future |
| mortgage payments until the home is sold. | | | | payments, make stopgap arrangements by |
| Lenders usually offer a variety of solutions for | | | | borrowing money from friends or family or |
| people who have fallen behind on their mortgages | | | | tapping retirement funds. Get help from a |
| including temporarily reducing or waiving | | | | legitimate credit counseling service who can help |
| payments, setting up short-term repayment plans | | | | you evaluate your options. |
| to help you make up the deficit, adding the unpaid | | | | If there is no avoiding a foreclosure, the only legal |
| balance to the principal of your loan and increasing | | | | recourse available to you is to file for bankruptcy. |
| your payments slightly to cover the extra | | | | Finally be prepared to face reality. Don't struggle |
| amount. | | | | to hang on to a house that you simply can't |
| Depending on the type of your mortgage, your | | | | afford when you'd be far better off without it. |