If you are falling behind on your mortgage payments and dreading the prospect of foreclosure, you may think you have nowhere left to turn. The good news is that nothing could be further from the truth. There are a wealth of resources and options on the table for people like you who are struggling to make mortgage payments; these resources are designed to help you avoid foreclosure whether through mortgage modification or any of a number of other options. Here are a few good options to check out.
Talk to Your Lender
The first step if you are facing steep mortgage debt is always to talk to your lender. This can be the hardest step, as well; many people are afraid to face up to the facts of their financial situation, and try to hide their heads in the sand and hope the problem will go away. The problem will not go away, but it may help to remember that lenders are people, too. Talk to your lender and explain your situation. Be honest. If the lender believes you are in earnest and simply unable to make the current payments, they will be sympathetic to your cause. Perhaps they will be able to offer you mortgage modification terms for a reduced interest rate or even a lowered principal.
If Freddie Mac owns your mortgage, you may be eligible for HARP refinancing. This program has helped over a million homeowners avoid foreclosure through refinancing and government-sponsored mortgage modification programs. Talk to your lender to find out if you are eligible, if Freddie Mac or Fannie Mae owns your mortgage, or if the lender participates in HARP or HAMP.