Keeping Your Piece of the American Dream

This was a reasonably intelligent woman, who was trying to support herself and her son and keep her home. She had never lied to get her mortgage. No one ever told her the monthly payment could double. She was caught in the switches. So I helped her contact the large financial institution that was now holding her loan, and I learned a few interesting things in the process.

What to Do if it Happens to You

Financial institutions do not want the expense of foreclosure, or the statistics of one more mortgage default on their books. They're willing to work with you if you don't wait too long. Here's what to do now.

• If you have an adjustable rate mortgage, good credit, and enough equity in your home, refinance to a fixed-rate mortgage now.
• If you’re lacking either creditworthiness or equity in your home, contact your lender immediately. Ask to work out a lower monthly payment, fixed at the original rate, before you become a statistic!
• Contact the company that is currently holding your mortgage, not the original lender. That original broker or lender has sold your paper and doesn’t care anymore!
• If you’ve moved past the early stages, or if they won’t negotiate, contact local community groups that work on housing issues. To find the nearest office of Neighborhood Housing Services, the national, non-profit housing advocates, go to www.nhsofamerica.org. (Full disclosure: I’ve been involved with NHS for years.)

You're not alone in your problem. A lot of people have a lot to lose if you lose your house -- whether they’re financial institutions, investors, builders and workers in the housing industry who don't want to see a flood of homes for sale, or simply your neighbors. That’s why there's a good chance that you won’t have to take the blame, or lose your home -- if you act quickly. And that's The Savage Truth.