Negotiation

• Although banks are not known as altruistic or flexible organizations, they are often willing to work with you if you're having trouble meeting your payments. Once you have the mortgage, it is in the interest of the bank to help you, because otherwise it will be faced with the expense and hassle of foreclosing on your home. Talk to your lender about options, including decreasing your monthly payment or deferring a payment for a month. You may also be able to borrow back part of the principal that you have already paid off. This will put you back into deeper debt, but will give you some financial breathing room.
  
  

Change Your Budget

• Take a hard look at your budget and try to understand where your difficulty is originating. It may be that your income is simply too small, or perhaps you are spending large amounts of money on things that aren't strictly necessary. Solutions to your problem depend on your situation. You could request a raise at work, sell your expensive car and buy a bus pass or quit your gambling habit. Whatever the solution to your personal problem, the goal is to achieve an income that is larger than your expenses.
  
  

Borrow From Another Source

• Although a mortgage usually gives you better terms than most other loan sources, in a crisis situation you may be able to fund your mortgage by borrowing money from somewhere else. Try not to do this with credit cards; their very high interest rates are likely to get you into even worse trouble. Borrowing from friends and family is a risky proposition, but is always an option. Taking a personal loan from your bank can help you to cover mortgage payments in the short term, although the interest rate on the personal loan is bound to be higher than the rate on the mortgage.
  
  

Sell Your House

• As a last resort, consider solving your mortgage problem by selling your house. If the problem is originating from the fact that the house is simply too large and too expensive for your income and lifestyle, this may be the best solution. Consider buying a smaller, less expensive house, or renting for a year or two while you get your finances in order. Although selling your house under duress will be stressful, it won't be nearly as stressful as having it foreclosed on by the bank.