In light of all of the talk about defaults I want to point out that predatory lenders are not solely to blame. People can be just plain stupid, I know that is not very PC so I took the liberty of providing you with a link if you prefer to insert a kinder word of your choice. Before I made the move to Mortgage Consultant I worked as a Collection Specialist for 12 years and I tell you I have heard it all. I need to lighten the mood up with all of this seriousness of Senate Bill 965 so I thought I would share my favorite RFD's or reason for default...
10) "I forgot."
9) "I mailed that... (pause) Oh, sorry it's still in my purse."
8) "I don't know. You'll have to talk to my wife. She's not here, she's shopping."
7) "I didn't get a statement."
6) "My Ex is supposed to pay that."
5) "I was waiting for my tax refund."
4) "I forgot to add a 1¢ stamp" <----note inflation here!
3) "My dog ate a rock."
2) I'll never know they didn't return my call.
and the number one reason borrowers pay their bills late is...
But seriously, if you are facing a hardship and are not able to pay for one reason or the other, contact your creditors and explain the situation. Most of them are going to work with you, some of them might offer reduced payments or an extension. If you aren't able to beat them to the punch, call them back and please be kind.