No one would enter into a mortgage to default on one, but life is full of unexpected circumstances. It is easy to be caught off-guard by unforeseen turn of event especially you have not build up a cushion fund for yourself. You could be facing financial strain due personal injury, illness, divorce, loss of income and so forth.

If you find yourself charging most of your expenses to your credit card and rapidly approaching credit limits, you may be on your way to defaulting that mortgage payment. Or maybe your bills are piling up but you have to pick out the most important ones to pay due to your limited resources. All this point to a real inability to pay a mortgage payment.

So what do you do? Wallow in self pity, avoiding phone calls from the bank and not reading late notices? Or you can take a proactive initiative to call your bank for alternatives. The thing with avoiding from the bank is that it is only a temporary means that will result in bad records and possible risk of foreclosure. A foreclosure is possible if you miss a payment for 90 days.

What can a phone call to the bank do for you? Firstly, know that your bank want your money, not your house. They will be happy to work out an alternative that both of you are comfortable with, at least until you can get financially back on your feet again. Secondly, some banks charge you exhorbitant fee for late payment notice and other associated fees unnecessarily and it is you job to stop them.

When you 'turn yourself in' rather than running away, you put yourself in charge rather than being a victim of consequences. That way, you are in position to negotiate a deal that help your situation.

Here are what you can ask for when discussing your options. Request for a waiver of nonsensical late charges. When you stop avoiding them, the need to send you late notices and lawyer letters stop with it and this will stop giving your bank any reason to charge you unethically. Think of it as 'damage control' if you will.

Next, tell them about your situation honestly. If it is a temporary hiccup, make it known. Ask for a new payment arrangement based on what you can afford to pay. Tell your bank how much time you need to reposition yourself and how long you need to have this arrangement to go on. Convince them about your ability repay by showing proof of incoming funds. Your bank will not hand out this offer unless you demand for it and proof that you are a qualified, genuine customer.

Perhaps the most crucial factor here is time, so make sure you don't procrastinate. Contact your bank today before they come chasing after you.