MONEY OBEDIENCE

back to the list of articles

Mortgage counselors are essentially debt counselors who specialize in mortgage debt.

If you have troubles making your mortgage payments, please keep two important things in mind. First, the sooner you acknowledge the problem, the sooner you can do something about it. Lenders are more inclined to work with a borrower who is upfront about his or her financial difficulties.

Second, use the services of a mortgage counselor. Mortgage counselors will advise you about your options, which may include extending the term of your mortgage, changing from an ARM to a fixed rate mortgage, getting some help from a government agency, or having to move to a less expensive home. These professionals have experience dealing with mortgage problems and know what option fits your personal situation.

As with debt counselors, it can be difficult to find competent mortgage counselors. You may have heard or seen advertisements of debt or mortgage counselors, who give you hope that you can lower or erase your mortgage payments easily. It is advisable that you do not make contact with such organizations or sever the contact if they reach out to you first. Getting out of debt is almost always hard work and requires a lot of discipline. While it is usually easy to get into a bad debt situation, it is almost always difficult to get out of it.

The Federal Government's Department of Housing and Urban Development maintains a list of approved mortgage counselors, who must adhere to a high ethical and professional standard to be and remain on that list. You can find this list here.

And always remember: if it sounds too good to be true, it probably is.