When you miss several mortgage payments and your lender sends you a notice of default, where do you turn for relief?

For the 112,210 Americans who entered the foreclosure pipeline in September, the answer is simple: Talk to your lender at the first sign of trouble.  Call immediately and ask to speak with the “loss mitigation” specialist.   The odds are strong that your lender has a forbearance or loan modification solution that fits your financial situation.  Explain your financial problem to them and work out a payment structure that works for you — and for your lender.

But many homeowners try to avoid dealing with their financial problems and don't realize there are options available.  Lenders want to keep troubled borrowers in their homes and out of foreclosure.  For lenders, foreclosures are costly — often entailing heavy payouts for legal fees, realty brokerage commissions, repairs, property taxes, maintenance and carrying costs.  Remember, banks are in the money-lending business, not real estate.  
If you can’t reach your lender or they are making unreasonable financial demands from you, consider contacting a local community group.

Nationwide, a growing number of community groups are helping distressed homeowners avoid foreclosure.  Consider the Homeownership Preservation Foundation, which provides a national toll-free hotline — 1-888-995-HOPE (4673) — offering free foreclosure prevention services and counseling to consumers.  Or consider contacting the National Training and Information Center (NTIC), a Chicago-based nonprofit community network.   Or call the East Side Organizing Project, a Cleveland neighborhood organization. All these community organizations work with homeowners in the foreclosure process by brokering deals with lenders that pay off arrears and re-negotiate payment plans.

Even the U.S. Department of Housing and Urban Development has a pamphlet called “How to Avoid Foreclosure” at: http://www.hud.gov/foreclosure/index.cfm. Today, more than ever, homeowners behind on their mortgage payments have many options to help them keep their families in their homes.

At RealtyTrac, we are always interested in your thoughts, feedback and suggestions.  All comments are greatly appreciated.   Send us an e-mail to editor@foreclosurepulse.com.