John Bendall owner of Re/Max Classic Group offers tips to help you keep your home and your good credit.

There has been an enormous amount of media attention dedicated to the number of recent foreclosures and the precarious position of the mortgage industries and home owners.  Very little has been said about what to do if you are one of the unfortunate homeowners who are falling behind in their payments.  So what should you do when you are fighting to keep your home?

The first thing you should do is contact your lender for help.  The lenders are struggling to keep their heads above water and they are going to be willing to work with you if it means that they are going to be able to collect money from you.  They may be able to alter your interest rate or the terms of you loan, in order to make your payments more manageable.  The banks would much rather have your money than your home.  It is likely that they would loose money in the process of foreclosure and the resale of their home.

Foreclosures can also create a bad image for a bank.  Customer word of mouth can do a lot to promote, or to damage a business.   No one who has been foreclosed on is going to be saying anything nice about the big bad bank that did it.  Communities with a lot of foreclosures can see a lot of resulting problems including the depreciation of home values.  Homeowners in those areas will also have no love lost for the banks. 

There are also a number of services that are available for low cost or no cost.  A counseling agency can offer advice on what will be most helpful in your particular situation.  They can also help you to negotiate with your lender.  They can be excellent advocates for individuals who may feel embarrassed, confused, or overwhelmed by their inability to pay their bills. Be sure to deal with a reputable service as there are many companies out there looking to take advantage of desperate homeowners looking for help.  If help seems too good to be true it probably is.

Communication is important in all our relationships business and otherwise.  Opening a line of communication between yourself and your lender may be the most important thing you can do to save your home. So if you are falling behind, don’t wait make a phone call today.

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