We all know that when your home loan goes unpaid you will be given notice by the bank you are going to default on your loan. Currently there are a few protections in place to keep homeowners in their houses, and possibly even give them a chance to restructure their loans. A bank is now required to offer to allow you to stay in your home for a rental fee, but they will also offer you a lump sum to vacate your property.

Within the last few months there has been percentage of homeowners who have seen absolutely nothing happen when they didn't pay their mortgage. While this may sound good to some people, it can actually be a very bad thing for the overall economy. The bank simply puts off foreclosing on the property because they would prefer not to have to write down a defaulted note. Furthermore, they don't want to push more REO properties onto the market.

When a bank allows someone to stay in their home and miss loan payments they cannot then foreclose on the note after the fact. So every month a note goes unpaid without notice from the lender, the bank is losing the ability to recoup cash for those months. Those months becoming total losses only adds to the distress of the banks assets, and further lends itself toward the potential insolvency of the bank.

If you cannot pay your note, the wisest thing to do is to contact the bank and ask for assistance in restructuring your loan. The bank wants to work with you and may be very helpful in assisting you to resolve any cash flow problems that you may have. Remember that they have an interest in the property as well, and will not necessarily act as your enemy. You certainly are not alone in hard times.