I am 32 years old and have managed to get by knowing nothing. It is time I learn as I am in terrible trouble. My husband and I have a home. We have had our mortgage for 7 years. We got behind at one point and have not been able to get caught up. We have approx. $10k in late charges, fees and interest due. We talked to the mortgage company about a possible payment plan to put the balance at the end of the mortgage. The only problem is our payment would go up. We are paying $1500 a month as it is. We had poor credit when we purchased our home so we have been behind the 8 ball for a long time. We have since worked on our credit, paid our bills on time but we cannot seem to figure out this balance or how to get rid of it.

Is there anyone out there that can recommend something to be done. Refinancing seems to be our only option but i don't see how that will happen given the balance we have? Please someone help me figure this out. What do we do???? I am desperate to figure out how to get rid of this debt. I am afraid we are knocking on the door to foreclosure. Please someone help me.

Fixed rates are down right now. Talk to your lender first about doing a rollover, then shop around as well. Right now the last thing your bank wants is to see you foreclose. They will probably give you a better deal than most others because they are already on the hook and will be owning it if you default.

If you have been more than 30 days late on your mortgage in the last 12 months it may be difficult to refinance. You need to be sure the regular monthly payments are kept current. Usually the late fees will accumulate but as long as you pay the regular payments it will not affect your credit. Check with your lender to see if your credit has been affected.