Remember the old college idiom - “Look to your left, now look to your right? These people probably won’t graduate.” The point may not have been that everyone knows someone who won’t make it, but we can still use that expression when describing today’s homeowners. Look to your left, look to your right - one of those neighbors may be in trouble. We all know a distressed homeowner - at least one, but perhaps two, three or twelve.

When a person faces losing their home to foreclosure, they are often too embarrassed to seek help. One day they’re there and the next, they are gone. Sadly, losing your house doesn’t always have to happen. Although lenders have been overwhelmed this year with short-sale and loan modification applications, they do get to them eventually and either of those options is much better on your credit score than an outright foreclosure.

In Chicago, Bank of America is working with community volunteers on an outreach project to get the word out that loan modifications are an option, according to the Chicago Tribune. The volunteers go to homes in trouble, knock on the door, and encourage neighbors to seek help. They provide them with the information on how to start and what to do.

If you find yourself in a situation where you’re behind on your mortgage payments, call your lender first and they will advise you on what to do. You don’t need to feel embarrassed to make the call, though it may be painful. They don’t want to foreclose any more than you want to lose your home.

Posted by:Kathy Tyson

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