The following is an article from the Better Business Bureau in Toledo, Ohio, that was printed on page 2D of Sunday July 27 print and e-editions of The Monroe Evening News.

By RICHARD T. EPPSTEIN
The Better Business Bureau

The headlines are discouraging. The mortgage crisis is taking a toll on many homeowners, just as the market value of their home is flattening or declining. Mortgage delinquency rates are up and home foreclosures are at a record high in many parts of the country.

There’s a wide spectrum of affected homeowners. A big group of people who opted for adjustable rate mortgages (ARMs) when the real estate market was booming have had their interest rates “reset.”At the other end, homeowners with sub-prime or non-traditional loans, such as interest-only mortgages or “piggyback” loans, already may be at the point of foreclosure.

In-between are the homeowners whose mortgage rates have already been “reset” and they are feeling the strain financially. They may be juggling their budgets or ignoring other debt obligations to make the bigger monthly mortgage payment. Some homeowners are contemplating selling their homes, but they owe more money than their home is worth, or there’s a glut of houses on the market. Many people would prefer to refinance to a fixed-rate mortgage, but lack sufficient equity or face burdensome prepayment penalties.

If your monthly mortgage payment is a financial burden or if you anticipate falling behind on your payments when your rate increases, know that you are not alone.

There are steps you can take that will improve your chances of keeping ownership of your home:

Carefully review the terms of your mortgage. If you have a sub-prime, nontraditional or adjustable rate mortgage you should review all of your loan documentation today. Don’t wait to find out that your monthly payment will double because of a pending rate increase. When are the “reset” points? Will you be able to make the new monthly payment with a higher interest rate? Would you face a prepayment penalty or other restrictions should you qualify to refinance? How much equity do you have in your home?

Can you rework your budget? It may be possible to make adjustments to your budget that will free up more money for mortgage payments. Reducing your spending or taking on a second job may help. Perhaps you can sell the extra car, forego private school tuition, take in a roommate, or make other lifestyle changes to bring in more money.

If you don’t hear from your lender, contact them. Keep in mind that your lender would prefer to avoid foreclosure as much as you would. Over the past year, the industry has begun to offer more assistance to troubled homeowners. More lenders are taking the initiative to forestall financial difficulties for adjustable rate mortgage holders. They are sending letters alerting homeowners to a pending “reset” and outlining refinance options. If you ignore phone calls or letters or other communications from your mortgage lender, you are adding to your troubles.

Speak to the right person. Most mortgage statements contain a phone number specifically for use by homeowners who need to discuss difficulty making their monthly payment. This may be listed as the Loss Mitigation or the Collection Department. Staff members within these departments can advise borrowers of the options or “workouts” available to someone in their situation. If you cannot find a reference to such a department on your mortgage statement, contact the main customer service number and ask to speak to someone in loss mitigation.

Discuss your situation honestly. Your mortgage lender will probably have a specialist ask some questions designed to help identify workout options that are available to you as the borrower. To accomplish this successfully, homeowners should have at hand their bills, statements, and anything else that will help give an accurate portrayal of their financial situation.

Consider your options. It is key to remember that there are always options available to assist you, no matter how serious your situation. Your lender will either pinpoint ways to help you keep your home or identify options that will involve the sale or loss of your property.