What can people do if they are in danger of losing their homes as mortgage rates sky rocket? Some of the things a homeowner can do when they find themselves in this situation are:

•  Visit your lender and rewrite your loan.
•  Ask for a temporary hardship payment plan.
•  Ask if deferred payments (interest only) are available.
 
Once you have taken the above steps, go over your finances to find or create more money in your budget to make your monthly mortgage payments, and to avoid bankruptcy or the loss of your home. Some things you can do are:

•  Cancel cell phones
•  Cancel cable television
•  Downgrade your home phone service to basic service
•  Contact any other credit bills you may have such as auto or credit card and ask about adjusting your interest rate and/or payment; make sure to explain to them you are having a hard time and that this is necessary in order for you to continue to pay them.

•  Carpool
•  Bring your lunch or coffee to work with you rather than stopping each day to purchase these items
•  Stop going out to dinner, eat in. HBM

From Michelle Dunn, who has over 18 years experience in debt collection and credit and is the author of 7 books in The Collecting Money Series. Learn more at www.michelledunn.com & www.credit-and-collections.com.

Previously published in the June 2007 issue of HOME BUSINESS® Magazine, an international publication for the growing and dynamic home-based market. Available on newsstands, in bookstores and chain stores, and via subscriptions ($15.00 for 1 year, six issues). Visit www.homebusinessmag.com