We provide industry news to help keep you up to date on what's happening in the mortgage industry. This information will assist you in making the proper decision regarding your specific situation. Of course, it's always imperative to speak with a mortgage professional to discuss your individual needs. Some of these decisions include when to move up, stay put, downsize, refinance, take out a 2nd mortgage, etc.

However, it's frequent, especially in these economic times, that people face a different issue with the cost of their mortgage - what if you're in too deep? Then what?

If you're among the many homeowners now straining under the weight of a too-big housing payment, the worst thing you can do is ignore the problem.

The best thing you can do is size up your situation. Is the housing stress you are facing the result of a:

1. short-term problem (i.e., layoff or healthcare costs)? or...
2. more fundamental problem such as a miscalculation of what you could afford?

If the stress is temporary, the solution could be as simple as rethinking your spending. Review your past 6 months of bank and credit card statements. What adjustments in spending can you make? Some suggestions are:

• cancel health club memberships
• skip a vacation
• lower the cost or eliminate gift-giving
• eat at home more often
• scrutinize your entertainment expenses

Look at the other side of the coin and think how you can increase your income. One option would be to reduce your withholding, which will increase your take home pay. A part-time, temporary job is also another avenue to consider to get you through this temporary financial crunch.

The effort you place could be the answer to saving, rather than losing, your home.

If your situation is more permanent, the solutions are much different. These options will be discussed in our next post.