Foreclosure doesn’t usually come as a big surprise to homeowners. You probably know, well before it happens, that you’re going to have trouble making your mortgage payments. Maybe you’ve been laid off or face unexpected medical bills, or maybe that adjustable-rate mortgage you took out a couple of years ago is scheduled to reset at a much higher rate, making payments out of reach.


Once you do fall behind, you’ve probably got a few months before your lender even starts the foreclosure process. The fact that foreclosure is a process—sometimes a long one—is good news for you. You don’t need to panic. You’ll have time to plan, negotiate, and evaluate your options—if you act as soon as you smell trouble coming. The more time you have, the better.


If your only problem is a few missed payments, your lender will probably be willing to let you get current over time or even add the missed payments to the end of the loan. If you’ve missed four or five payments, your lender may not be flexible—but you still may be able to work something out. 


Don’t wait for the lender to contact you. Just as soon as you realize you’re going to have trouble making your mortgage payments, you can and should start working on the problem. This chapter will show you how.


Don’t panic—and don’t get scammed. Foreclosure rescue scams have popped up all over the country in response to the soaring foreclosure rate and the new government programs that offer various types of mortgage modifications. Almost without exception you will be worse off with these scams than if you let the foreclosure go through. To find out how scammers work and what to look for, see “Don’t Get Scammed by a Foreclosure ‘Rescue’ Company,” below.