When Debt Mounts, Take Action To Prevent Foreclosure

If you're worried about losing your home because you can't pay your bills, you're not the only one. As the rising rate of foreclosures shows, foreclosures affect a lot of people every year. But many of them could be avoided if homeowners asked their mortgage company or a new toll-free, confidential hotline for help sooner.

A recent national poll paid for by the Homeownership Preservation Foundation found that 53 percent of American homeowners would not call their mortgage company for help if they were late on payments.

Many foreclosures could be avoided if homeowners called their mortgage company or the Foundation's toll-free hotline, (888) 995-HOPE, as soon as they realised they might have trouble paying their mortgage. The less options people have, the longer they wait to call for help.

If you're a homeowner whose debt keeps growing and you're having more and more trouble paying your bills, you might want to do one of the following:

1. Look closely at your bills. Unopened envelopes or a pile of bills from utility companies, your mortgage company, etc. that keeps growing are the most obvious signs that you have a problem.
2. Read letters from your mortgage company and other creditors. Don't put these letters aside.
3. If you don't feel comfortable calling your mortgage company, call the Homeownership Preservation Foundation at (888) 995-HOPE to get free advice from counsellors who work for HUD-certified nonprofit agencies.
4. Make a plan that focuses your money on what your family needs (shelter, food, health care, basic utilities, and transportation).
5. AVOID fake counselling services (only work with HUD-approved services) and deals that seem too good to be true that come in the mail or over the phone.
6. Don't take responsibility for it. Try to get help. Call your mortgage company to find out what choices you have.
7. Figure out if you have enough money coming in to keep paying your mortgage or to refinance it. This will help you figure out if you should sell your house and move somewhere cheaper.
8. DON'T sign any papers you don't know what they say.
9. Admit that you have a problem and make a promise to get help. If you don't pay your mortgage company or other debts, you could lose your house and hurt your credit score.

Set a long-term goal to get out of debt and stay out of debt, and make sure you have a steady flow of cash.