'Don't Panic' - Options to Avoid Foreclosure

MyFoxHouston - A lot of people are having trouble paying their mortgage in this shaky economy. The amount of newly-delinquent mortgages increased during the second quarter of 2010, according to the Mortgage Bankers Association.

What should people do if they are having trouble paying their mortgages?

Certified Public Accountant-Certified Financial Planner Ed Gardner explains on FOX 26 Morning News how to solve a mortgage dilemma.

Gardner says anyone having trouble making regular mortgage payments should communicate with their lender and calculate if they have equity in their home because foreclosures can ruin people's credit for up to seven years.

Repayment plans, refinancing, forbearance and quick/short sales are among the options that borrowers have with lenders when having trouble with making mortgage payments. Gardner says declaring bankruptcy should always be a last resort.

The Obama presidential administration has established a program to help homeowners make their mortgage payments called the Home Available Refinance Program (HARP). Homeowners should check with lenders about the program.

On the Web:

U.S. Government Making Home Affordable program -- http://www.myhomeaffordable.gov/

U.S. Department of Housing and Urban Development -- http://portal.hud.gov/portal/page/portal/HUD/topics/avoiding_foreclosure

Hope Now Support and Guidance for Homeowners -- http://hopenow.com/