Foreclosures are everywhere. People are losing their homes in record numbers. We would all like to think that this can’t happen to us, but we would be mistaken. It doesn’t take very long to move from a responsible bill payer to someone unable to meet their obligations and be forced to face the loss of their home. A simple life occurrence such as a job loss or a serious health issue can change everything. Statistics show that 32% of people who experienced a job loss fell behind in their home payments. Another 25% found they were unable to keep up with their obligations after a health crisis. With that thought in mind, this would be a good article for everyone to read. Even if you are fortunate enough not to have this experience yourself, chances are you may know someone who is going through this difficult time.

When financial problems arise, regardless of the cause, the first thing a person should do is discuss the situation with your mortgage holder. Call the number provided on your statement and ask what they can do to help you resolve this problem.

Usually a mortgage company will respond by putting you on a repayment plan. This will generally involve reducing, or possibly suspending, your payments for a period of time. You will still be responsible to pay this money, but it will be rolled back into your loan at a later date. Meanwhile, this action will give you a chance to find a job or, perhaps, recuperate from an illness. If this plan does not resolve the situation, it is possible that the company will offer to modify the loan’s interest rate.

If you do not find that your lender is cooperating satisfactorily, you may be able to obtain help elsewhere. One of your first contacts should be with an organization called HOPE NOW. This is an alliance of counselors, mortgage services, and investors who can be reached at (888/995-HOPE).

If you are still dissatisfied with the help you are receiving, it might be time to find a credit counseling service, but be certain that they have a housing counselor on staff. Information on counseling services in your area can be found on the web at www.HUD.gov .