Many Americans are facing foreclosure due to the credit crisis. What should be your first step if you cannot make your mortgage payment? Your first call should be to the bank. You want to speak with someone in loss mitigation. See if you can work out a forbearance agreement or perhaps even work out new loan terms. Sometimes a bank will even lower your principal balance as well as interest rates. At the least you can hope for a forbearance agreement. This will allow you to pay back a smaller mortgage payment for awhile. The portion of the payment not paid will be tacked on to the end of the mortgage. At the least it will give you some relief in the present.
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