Many consumers who are buried under a mountain of credit card debt and who are facing financial hardship have been able to hammer out settlement negotiations with their lenders in recent years. Due in part to the recent economic crisis, many lenders are eager to accept settlements if they are convinced that full future payment is unlikely. However, the debt settlement practices and laws that apply to unsecured debt, such as credit cards, often do not apply with secured loans, such as those used for autos and home mortgages. Because these types of loans are based on collateral property, the lender will often opt to repossess the car or foreclose upon the home rather than working out a settlement. However, if you are a homeowner who is facing financial hardship, it is important to contact your lender and initiate discussions about possible solutions right away. Although a mortgage debt settlement is highly unlikely, your lender may be able to extend some other type of relief that can help you get back on your feet.