Every night, a scene unfolds on the evening news that is now becoming common – another family is evicted from their home because of missed mortgage payments. This is making life hell for those who still have a mortgage. Will it be their faces coming out next on the television screen?
Once you know you're going to be having trouble meeting your mortgage payments for any reason, there are certain steps you can take so that you won't be the next one foreclosed. Just remember, the lending companies don't really want your home, they want your money. With that in mind, you may be able to set up negotiations with them.
First of all, if there are any negative changes in your finances, let the lending institution know immediately. Don't pretend that the problem isn't happening; that will just make it harder to unravel later on. Once you let the lenders know, you will be able to start discussing a solution that will benefit both of you.
Those letters sent to you are actually pieces of evidence that can be used against you, even if you don't know anything about them. The lending institution is required to give you several chances to air your side of the problem and to let you know if there are any legal actions that you must answer for. Read all the mail you get from them and file the letters accordingly. Note down any actions you had taken, even if it was simply a call to get things straightened out.
You still do have rights as a mortgagee and there are options that you can take, both personal and legal. Show the lending institution, though, that you are willing to fight for your home. Cut your spending drastically and eliminate the frills to add to your payment. You might sell or trade in your other assets in order to boost your payments. Would a second car or excess stuff be more important than your home?