The foreclosure crisis is certainly hitting the working class quite hard. It claimed another victim in the person of Ernestine Anderson, a 79 year old - jazz vocalist who sang with famous singers such as Ray Charles and Quincy Jones.

The Seattle local is reportedly behind in her mortgage payments amounting to over $30,000. The said amount also includes penalties and taxes. In order to stop foreclosure, friends and family of the artist have begun to plead for donations, hoping to raise around $45,000 in a week’s time. After stopping foreclosure, they will also try to work out a deal with the lender in order to make the mortgage payments more manageable.

Anderson is reportedly paying a monthly mortgage amount of $5,000. Officials of the Urban League of Seattle how the artist managed to secure a loan such loan considering that her Social Security payments each month only amounts to $1,000. According to public records, there still remains a principal balance amounting to $450,000.

If the efforts to stop foreclosure fail, Anderson will have to give up the property, which was her parent’s home ever since 1946. A foreclosure auction of the property is scheduled on July 11.

Again, distressed homeowners are reminded that they should not wait until the last minute before finding a solution to their mortgage problems. Talking with their lenders should be the first step. You might try to work out a new repayment plan or have your existing loan modified. Other options you can explore include refinancing, deed in lieu of foreclosure, short sale and even bankruptcy, if worse comes to worst.

In some cases, it is also better if you seek legal advice in order to determine whether or not you have fallen victim to mortgage fraud. Some mortgage providers falsify information during the loan application process, making you qualified for loans you can not afford.