With the incredible rise in foreclosures this year, a lot of people are obviously having trouble paying their mortgage. We all know that this is mostly due to the fact that people took out interest only or short term mortgages, and they can no longer afford the payments. If you are in this situation, there are a few things you can do starting today to help ward off foreclosure on your home:
Notice the trouble early and start planning for it.
Try to get refinanced if you can prior to getting in any deeper.
Take advantage of mortgage relief, which is available in several states. This gives you extra time to avoid foreclosure.
If already headed for a missed payment, call your lender. You can ask for a for a forbearance (paying a very small amount for a short amount of time) or a loan modification (temporary adjustment in your rate).
If all else fails, try to negotiate a short sale, where the lender agrees to cancel your debt in exchange for the proceeds of your home sale.