Are YOU in Trouble?

As the foreclosure tsunami continues to roll forward, many folks are unaware of the fact that they CAN do something to stall or avoid completely the potential loss of their home by foreclosure. The MOST IMPORTANT THING TO DO: As soon as you miss a payment, or think you're going to have problems keeping up with the payments for whatever reason, CALL YOUR LENDER!! Put them on notice of your problems and ask to speak to whomever oversees such situations. It is in the bank's interest to help you avoid losing the house to them. If they foreclose, they lose money, have more regulatory scrutiny and the problem of selling your home, none of which they want.
Although it varies by state, once you miss a payment, the bank must formally record a notice of default to actually start the foreclosure process. Once that is done, they have about three month and change that must pass before they can actually have the house sold at public foreclosure auction. So, the sooner you take control and call them, the better your chances will be at keeping your home. They may agree to change the type or terms of your loan; they may agree to defer some of your payments--but you MUST MAKE THE CALL!