What You Can Do if Facing Financial/Mortgage Difficulty
 
1.  Call Your Mortgage Provider
However, embarrassing and uncomfortable that may be you have to call them.  Call them and explain your situation.  Tell them your intentions. Some creditors, may be mean and make you feel lower than low, but if they don't know that there is a problem they won't be able to help you before it is too late.   I might add, that now that this issue is at the height of nationwide awareness you will find that most creditors want to help you.  If truth be told, they need to help you, for it is in everyone's best interest that you repay the note.

2.  Call Consumer Credit Counseling Services
CCCS is a non-profit reputable credit counselor.  Some places will charge you to do what they can do for you for free.  They can call all of your creditors and negotiate with them on your behalf to lower interest rates, waive late fees, and talk to your creditors. You can find them in your local white or yellow pages.

3.  Pay your mortgage first.
I know that sounds weird, since it is usually your largest bill, but if you go delinquent on your mortgage it is much harder now than ever to refinance to consolidate bills, switch to a fixed rate etc.. if you aren't paying your mortgage on time.  Credit card companies will work with you if you have problems, CCCS will help you if you have problems.

4.  Do not procrastinate!
Most of the people I deal with that get into trouble, often times waited until it was too far gone to do anything.  If you even start to feel like you are sinking, consult a mortgage professional or a financial advisor ASAP!  Ignoring the problem, or hoping it will go away is a bad move.  Do something before it is too late. 

5.  Do your best to pay the bills that report to the credit agencies first!
These are installment loans, mortgages, and credit cards.  Usually your power bill, your water bill, cable bill etc...is not reported to the credit bureau unless you don't pay at all!  If you have to roll those and pay those late it is better to do that and work out arrangements with them because they do not report to the credit report.

6.  If you are on an ARM (adjustable rate mortgage) do not wait until it is time to adjust to fix it.
Many homeowners are tempted to wait until the last minute hoping the rates will go down.  If you do this you are basically playing Russian roulette.  Nobody, knows the future except for God.  Take the fixed rate and if the rates drop refinance then, don't gamble with the future.  Rates lately have been very turbulent.  They are still good mind you, a 30 year fixed rate is about 6.25% give or take what ever adjustments you might have, but they are been rising steadily since February.

7.  Mortgage programs have changed.
The days of non-prime out of the box mortgages are over.  There are very few "stated income and No-Doc" mortgages anymore.  Income has to be verified!  Bear in mind if you are a self employed person, be careful about writing off all of your income because lenders are now using your adjusted gross income as your income. I know you like to write off as much as you can so that you don't pay outrageous taxes but pick your poison wisely. With that said, credit, income, and assets along with collateral are the driving forces behind mortgages.  If you have bad or slow credit, your only hope is an FHA mortgage and with that you better have a good reason for the credit problems, and some compensating factors.  Like good time on the job, low loan to value, a lot of assets. etc....  

8.  Consult an attorney.
If you are facing foreclosure, credit problems etc... please consult an attorney and check out your legal options. Even though bankruptcy laws have changed there are still options available.  I no longer know the laws since the changes, but do consult an attorney.

9.  Selling is an option.
First off, understand this is a depressed market.  It is a buyers market.  Meaning that you are not going to get full value for your home.  You need to find out what the value would be ask a realtor what they think your house would sell for and consider selling the house and down-sizing.  IF there is still equity in the home, perhaps you can use that money to pay off your existing debts and start at zero.  There are still tons of options for rentals, and owner financing so do not be afraid to step back because zero is a whole lot better than -400,000!  

10. Pray, ask for forgiveness, and repent and become obedient.
This should be number 1, but I am saving the best for last. If you are facing financial difficulty, let's be honest.  Chances are that you have not conducted your business biblically.  The Proverbs always tell us that the borrower is slave to the lender. We are to owe no man nothing except for your love.  I consider debt is anything that you can't repay.  For instance if you owed 100,00 in bills for a car, house, credit cards etc.. and your house is worth 200,000 then you are not in debt for you could always sell your home and be debt free.  But, if you owe more than what you can repay you are out of the will of God.  You need to pray and ask God to fix the mess you made.  We all make messes so don't take it personally.  I am not getting on to you, just telling you the truth.  Confess your sin to the LORD admit that you have not consulted him in all your ways, and that you violated His scriptural guidance.  Repent, from this day forward resolve to change your spending habits and such that brought you to the place that you are.  If you really want to be out of debt quit spending!  Don't tell me either that you don't spend and that you can't cut back, because there is always something we can do.  If you can't cut anymore consider taking on an additional job.  I know there are employment challenges in this economy, and there are time restraints, but pray and ask God to open the door and place you in the right place.  Become obedient to God's word.  I tithe, but there are some that think that is OT law, so give and give as you have been blessed.  NT giving is way more than a tithe so I think you are getting off pretty good with a tithe anyway.  God says, "test me and try me in this and see if I don't open up the windows of Heaven and pour out a blessing on you."  Just be faithful to give God what belongs to Him, your life, your time, and your money.  Consult Him in all your ways, and give Him the first fruits of your labor.  Give Him the very best and watch if He doesn't somehow turn things around for you.

If you have any questions feel free to post them and I will answer them the best I can.  As always comments and feedback are welcomed even hate mail I love it!