It's a very difficult situation when a homeowner is faced with a potential foreclosure. There are solutions, but they aren't easy to put into practice. With the subprime woes and the real estate market downturn upon us, there are increasing numbers of people who are caught in the unenviable dilemma.
In an earlier blog I talked about some of the steps that should be taken. First of them was to contact the lender. A critical move. Another step is to seek credit counseling. Credit counseling agencies provide a valuable service for anyone and often are free. But they can also be brutally straight forward about what should be done. They basically tell the homeowners that the ultimate responsibility is theirs. Yes, the housing market is soft, yes, there are dishonest mortgage firms, yes this and yes that. But, ... .
Going out to dinner, no. Cancel the extensive cable service, yes. Tighten your belt, is what they'll tell you. How about this. A man falls behind in his loan payments, gets money from his son to bring them current and then uses that money to buy back his toy train collection from the pawnshop. The counselors' message is that the person who is going to save your house is you. Period.
The Internet offers a host of websites for this. One of them is here. It's important to do your homework before choosing one.