The Foreclosure Report

What Happens When Borrowers Get Behind

The Dallas News takes a look at how families get behind. "Once you get behind, it just compounds real quick," said Reid Remington, housing counselor at Consumer Credit Counseling Service of North Central Texas in McKinney. 'After the second payment is late, if you don't send in the full amount, then they'll stop accepting any payments, and that's when they just seem to spiral downhill real quick.'"

"Some consumers don't see the many places they can cut nonessential expenses. 'They're still going out to eat lunch and dinner or they have a $150 cell phone,' said (credit counselor) Beverly O'Pry. 'Is my cable more important or is it my house? If you don't have a house, you don't need cable.'"

"'Some mortgage companies won't work with you if you don't have a cash cushion, because they want to make sure that the client can afford this mortgage,' Pry said. 'If it looks like it's so tight that they can't afford it, they'll go ahead and foreclose.'"

posted by Ben Jones @ 2:38 PM