Financially strapped homeowners typically face a long hard road from that first late payment to the outright loss of their home, but sadly, most of the people who are on this road never pick up the telephone to call their lender and discuss their personal situation. Some fail to act because they feel uncomfortable or embarrassed. Others have given up hope of a better outcome. But if you're in this situation, it's worth making that call because sometimes there are other alternatives such as forbearance, loan modification, refinancing, a short sale or a deed-in-lieu.
The truth is that anyone can suffer a serious setback in life such as a major illness, disability or unemployment. That means anyone who has a mortgage could one day be facing foreclosure, and even people who feel financially secure today should know about the choices they'd face if they fell into a less comfortable situation tomorrow.