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Foreclosure is a frightening word for those facing it. It brings up many emotions -- fear, anger, sadness, embarrassment. You feel as if everyone knows you are about to lose your home and looks at you as a big fat failure. It becomes difficult to hold your head up. Depression and insomnia kick in. Before you realize what's happening you've become a stressed out basket case, incapable of making simple decisions let alone embarking on a complicated process to save your home.

Foreclosure is stressful long before the actual process begins. Stress sets in the moment you are unable to make a mortgage payment. It's a gut-wrenching experience. You think you'll find a way to figure it out and put off calling your lender. You call your mother, father, sister, brother, and anyone else you might be able to borrow money from. You look for a part-time job or work extra shifts.

All the while your mind is racing as you watch the days fly by. Now, you've incurred a late fee and next month's mortgage is due in two weeks. Your stress level is escalating, but you're still hopeful you can figure this out.

Next month has arrived and your lender is calling every day. You're thankful you have caller ID and can avoid the calls. This is the biggest mistake nearly everyone makes. Believe it or not, your mortgage lender is not the big bad wolf -- unless you continue to avoid them.

Your lender does not want to foreclose on your property. It costs them time, money and resources. Depending on the circumstances that caused you to fall behind on your mortgage, your lender might be able to offer you mortgage modifications, forbearance agreement and other options to help avoid foreclosure.

When you ignore requests from your lender, you are giving them no choice but to move forward with foreclosure proceedings. Lenders typically initiate legal action after you miss two or three payments. In other words, you don't have much time to procrastinate about calling. Once the pre-foreclosure process begins, it greatly increases the cost to bring your loan current.

The Federal Housing Association (FHA) offers assistance to individuals with FHA-insured loans. Housing counselors are available to review your financial situation, determine your options, and negotiate with your lender.

Now is a good time to consider working with a credit counseling agency. Credit counselors can help you establish a budget and negotiate debts and restructure credit payments with creditors. Be cautious of credit counselors who charge large upfront fees. Carefully scrutinize the company and check with the Better Business Bureau before handing over your financial records.

Do not underestimate the importance of maintaining good credit. In this day and age, everything depends on good credit. When you're credit is blemished you end up paying much more for credit -- if you can get it at all.

Foreclosure can remain on your credit report for up to ten years. That's a very long time to be subjected to higher interest rates and fees charged by companies who do provide you credit. It can cost you several thousand dollars in the long run.

If keeping your home is not an option, your lender may be able to offer you options to prevent foreclosure. These might include allowing you time to sell your home, pre-foreclosure short sale, or Deed-in-Lieu-of-Foreclosure.

Facing foreclosure is scary, but you don't have to endure it alone. At Simon Volkov, we work with people every day who are in the same situation as you. We understand the emotional aspect of foreclosure. We know it's embarrassing and difficult to discuss. When you talk with Simon Volkov, you'll be treated with the utmost respect and consideration.

If you need to get out from under your mortgage payments, Simon Volkov can help. There is no fee to speak with one of our consultants. To get started, fill out the secure Pre-Foreclosure Form. Upon receipt of your information, Simon Volkov will contact you within 48 hours.

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Published on December 27, 2007 at 09:56 AM

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