I have been hearing many stories lately from clients and colleagues about bad mortgage situations created by bad advice.

     A mortgage obtained though bad advice would be a mortgage that one could not afford in the first place, will not be able to afford in the short term future or most importantly will not be able to get out of in the end.All very bad.

     Bad advice is given by people that market themselves as experts or experienced but really have no idea what they are talking about. On occasion bad advice can be given by someone who has their own interests at heart over yours. Interests such as getting the deal done or making the most money for themselves; not really caring what affect it will have on you or your future.

     This is what we see many times over and what the ripple effect is now.The problem is that people are moving into the after affects of the bad mortgages that they should have not received or taken in the first place.They are having trouble and are falling. The world economy is feeling great punches now but will eventually turn around.A consumer that got caught up in it will have life changing and drastic repercussions from these poor decisions.

     Where does one turn? If you know you are getting into trouble, do not ignore it, do not go back to the person that got you into trouble in the first place and begin the process of saving yourself.You will know when it is time to take the right steps.If you do it when you are level headed, it will be easier.

     Get the proper information on your own first. Call your lender and inquire about the process of default and forbearance.Can you skip a payment? What can you do if you cannot make a few payments?If it gets really bad, should you sell your house?Find out what the value might be.Should you consult an attorney? People will begin considering bankruptcy.Is this a last resort or an easy way out?

Whatever you do, go to the right people. Attorneys and accountants can recommend attorneys. Banks will help. People that gave you the loan in the first place will tell you tell can help you get out of it. Run away. Ask questions to all. Make your own decisions.

– Dale Siegel