Lose my home if consolidate

vkyshowcase,

I have never heard of anyone losing their home if they consolidate. Now, if you are possibly behind on your mortgage payments and plan to put your arrears in and you have found a company that said they can do it, I strongly urge you to check this company out throughly b/c as we all know "people will tell you anything to get your money" and at the present I do not know of any consolidation companies that can stop foreclosure. To my knowledge the only way to stop foreclosure is to file Chapter 13 Bankruptcy at that time they will take the payments that you are behind and consolidate them into a plan with the rest of bills. You will make one monthly payment as well as your house payment for which you will continue to pay to the lender, but the bankruptcy payment will go to the trustee. Now the new law does require that you go to a approved Bankruptcy credit counseling agency first. There will be a small fee for the counseling, but if they determine that counseling will not help then you will be referred to a Bankruptcy attorney. I hope this helps and good luck!!!