This previous story about Drunk Jim illustrates the worst thing that can happen if you do absolutely nothing to help yourself. The only thing the bank can do to you is evict you from your home and place a negative report on your credit. That’s it. That’s the worst of it. Hell they can’t even evict you as long as you leave before the sheriff shows up. As the title of this chapter says, the bank can’t shoot your dog. The fear of the unknown is what paralyzes most people. People tend to make a bad situation worse in their imagination. The fear of foreclosure is usually worse than the actual event. I have worked with many clients who have told me that they actually felt relief when the foreclosure was complete. They report to me that the foreclosure was actually a fresh new beginning for them, not a tragic end.

Let me paint a different worst case ending for you. In your case the absolute worst thing that will happen is you will fight to keep your house. You will try to modify your loan, get a forbearance, a reinstatement, file bankruptcy, do a short sale, whatever is most appropriate for your situation. You’ll follow my techniques to exercise all of your options. If none of these attempts pan out you will lose your home to foreclosure. But you are smarter than Drunk Jim. You will start talking to your lender as early in the process as possible and sort through and try all of your options. You will buy the most valuable commodity: time.

The worst thing that will happen to you is you will live in your home rent free for a period of time, you will save your money, identify how you got into this financial mess and take steps to prevent it from happening again. You may lose your home to foreclosure but you’ll exercise all your options even then. You may decide to take the cash for keys offer from the bank or you may decide to stay in the house right up to the eviction. As long as you move out at least a day before the sheriff shows up you will avoid the fate of Drunk Jim. The important thing is to take control TODAY and delay the process. Your options will dwindle as time passes.