We are seeing a modest increase in mortgage delinquencies in our practice, consistent with nationwide trends. This is particularly true with variable rate home equity loans given the increase in interest rates these last few years. If the increase in interest rates, plus taxes and insurance, or job loss, makes it increasingly difficult for you to pay your mortgage, what can you do? My advice is to try to work with your lender, so matters do not get worse. Perhaps the lender will permit interest only payments for a time or reduce the interest rate. The worst thing is for you to not face the problem head on. As painful as it may be, you also may consider selling the house to preserve the equity, and either renting or finding a more modest residence.
Mitch