Jason wrote to me through the GetOutOfDebt.org site and asked the following question. If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.

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“Dear Steve,

I fell behind on my mortgage payments then I stop paying my mortgage payments and let things get worse.

I fell behind in my mortgage and then gave up and stop paying it. I’ve been in foreclosure for about ten or more months. In a few weeks there will be a court case not sure if it will be final but i was served papers from the bank ten months ago or so. Can I stop all this and keep my house or is it too late now that i woke up and want to fix this mess?

Please help me if you can, thank you.

Jason”

The Answer:

Dear Jason,

The biggest issue we need to deal with after ten or more months of avoiding dealing with this is how much time you really have left.

I suspect that you don’t have a lot to enter into a long protracted negotiation process. You have three options:

Call The Lender Directly

You could call the lender directly and see what options they have to help you reinstate the mortgage.

Call a HUD Approved Housing Counselor

You could discuss your case with a local housing counselor and see what options they may have for you. You can find one online here.

You Could File Bankruptcy

You could talk to a local bankruptcy lawyer to see how a chapter 13 bankruptcy can protect your house and get you back on a payment plan to repair the delinquent mortgage situation.

Please come back and let me know which option you choose and what the outcome is.

Steve

The Answer: