By Karen Lawson
Mortgage Credit Problems Columnist

If your mortgage lender is threatening to start foreclosure, don't make the mistake of thinking it's too late to save your home and your credit. No matter what caused your financial problems, you can find help. Mortgage lenders generally want to assist homeowners with bringing their mortgage payments current instead of foreclosing, but there are some things you'll want to take care of before calling your lender.

• Take steps to improve your finances and your future: Shopping can become a compulsive activity, but you don't have to lose your home over it. If you've missed any mortgage payments, or are considering paying credit card accounts before making your mortgage payment, please contact a credit counseling service immediately. These services work with over-extended borrowers to arrange repayment at favorable terms. They can help you establish a cash-based budget and modify spending behavior.
• Don't Criticize Yourself or Make Excuses: When creditors start calling and flooding your mail box with demands for payments, don't fall into a trap of thinking you're incapable of dealing with your finances. Don't be bullied into spending your house payments for other bills; where will you go if you lose your home?
• Know the Facts before Filing Bankruptcy or Allowing Foreclosure:
  Bankruptcy and foreclosure are legal proceedings that stay on your credit report for ten years. This creates major problems if you're trying to get a job, or qualify for a new home loan or rental. Bankruptcy attorneys may contact you and say that they can stop foreclosure. It's true that a bankruptcy can delay foreclosure, but ultimately, the court is likely to allow foreclosure unless unusual or compelling circumstances involved. In today's information-driven society, potential employers and landlords may check your credit history. Foreclosure or bankruptcy can be cause for denial of your application.

Prioritize Your Needs and Stop Foreclosure Now

If you've missed any mortgage payments, please call your lender today. The longer you wait, the more your lender will require for repayment. Once foreclosure is started, additional fees and costs are added to past due payments and late fees. Your mortgage lender is motivated to stop foreclosure for one reason, and that is saving money. The sooner you call, the faster they can make arrangements to help you save your home, and yes, the more they will save compared to the cost of foreclosure.  

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• Six Options For Managing Debt
• What You Should Know About New Rules for Debt Relief Services