Many homeowners are facing some tough decisions with their Adjustable Rate Mortgages getting ready to re-ARM at higher interest rates. It’s vital that homeowners become more proactive than reactive in this type of situation.

Lenders are more likely to want to work with proactive homeowners.

• Being proactive signals commitment and logic.
• Being proactive indicates an orientation towards seeking solution and resolution.
• Being proactive indicates an orientation toward reality – life changes, we need to change and deal with it.

Reactive includes: procrastinating, hoping that things get better on their own (magical thinking), trying to avoid the reality of the situation helps to exacerbate the situation bringing more frustration, anxiety and work into the mix for everyone involved.

It’s sad to see situations deteriorate where options were available. Some homeowners are forfeiting homes through short-sales and foreclosures without looking deep enough for other options or they are backing themselves into a corner by not taking action soon enough.

Freddie Mac Says Typical Foreclosure Costs $60,000 – If you are one of the thousands of American’s facing foreclosure, you may have a great deal more bargaining power than you ever thought. Analysis from Freddie Mac and large banks show that their cost to foreclose on your home is in the range of $60,000 on average.

The high cost of foreclosing on a loan is ample evidence that if you are having a hard time making your housing payment, talk with the lender. They have a strong incentive to work out the problems with the loan and try to find an acommodation.

The ugly face of foreclosure – When foreclosures climb, entire communities can go down.

Foreclosures are devastating communities across the United States, and the impact may only worsen as more subprime adjustable mortgages reset during the next few months.