Why You're to Blame for your Foreclosure

All right - enough with the complaints already! I'm tired of hearing sob stories about foreclosures and loan agents that are not honest. It seems everyone has a story to tell about losing their home. Well, that's all there is to read in the real estate sections of most newspapers. You'd think there are houses out there for the picking. The truth is, there are not. In Sacramento, prices have dipped about 10% - a sizeable amount of money, but most people will recover.

Unless you have just lost your home. And people are quick to blame the lenders, the mortgage brokers, the real estate industry, their neighbors, the bank, the Feds, the government, and so on.

I'm tired of the blame game. The fact is, if your house has foreclosed on you, you have no one but yourself to blame. You bought the home, you signed on the dotted line, and you told yourself interest rates would never rise. By the way, if you have a legitimate reason, most mortgage companies will accept a short sale with a realtor. More on short sales later.

My only advice if you are behind in your mortgage payments and think you might lose your home: KEEP TALKING TO YOUR MORTGAGE COMPANY. Don't avoid the letters, phone calls, and other communication. Let them know you are having trouble making the mortgage payments, ask them about other options. Remember - banks are not in the business of real estate, they're in the business of money. They really do not want to foreclose on your home if they can work it out with you.