Let your lender know when problems arise

The first thing financially troubled homeowners should do whenthey know they can't pay their mortgage is notify the lender.

Warned of your financial problem before payment is due, a bankor S&L is much more likely to work with you.

Even if you miss only one mortgage payment, it's probable you'llbe hit with a late-charge penalty. Most lenders charge a 5 percentpenalty for payments made after the 15th of the month - that's $40 onan $800 mortgage.

If you are 60 days late, a bank or S&L will turn your accountover to its collection department. After 90 days, it goes to thelegal department and foreclosure proceedings start.

Borrowers with good payment …