I had an interesting experience lately.  It involved a person I knew that was going to go into foreclosure.  This was a very nice person with a family, a cute little house in Toledo, a dog, an above ground pool. 

Just like many people who have purchased homes recently, their interest rate was raised and it was becoming harder and harder to make the payments.  They were trying so many different ways, however none was working.  They had to try to sell and in todays market the only way was to sell their home below what they paid for it originally.  They would have to try to do a 'short sale' with their lender.

To make a very long story short, The lender decided to help them out, somehow lower their interest rate and refinance, and help them pay back taxes.   This was like a miracle for these people.  I am sure this wasn't a gift, they will still be paying, probably for a long time. But at least they were able to keep their home.

I don't know if you have been following the market.  But, finally maybe some of the banks would rather work 'with' their clients who are in trouble and seriously want to work it out, instead of taking on anymore foreclosed properties.

I hope I hear more stories like this.  It is going to take awhile for the  banks to work itself out  of the mess we are in now. True, it may be a little harder for some to get loans, many will need to be concerned about keeping a good credit rating.  But, that is a good thing.

Nancy Lohman