Sometimes keeping your home can be harder that buying your home. Life’s changes can put you in a tough spot when trying to make all of your monthly payments.
If you are beginning to fall behind on your mortgage payments, it is essential to contact your mortgage lender on a regular basis. Keep them up-to-date on the steps you are taking to catch up on your payments.
Mortgage lenders are more willing to be lenient when they know that you are trying your best to get back on track. Remember, they don’t want the home; they want to profit from the loan.
Mortgage Delinquency Counseling
If catching up on payments proves to be difficult, you should meet with a housing counselor. Find out what types of assistance are available.
A budget analysis can help determine opportunities for reducing expenses or increasing income. Debt counseling could find ways to trim other payments in your budget.
Default Resolution Counseling
Serious delinquencies may still be cured by entering into an agreement with your lender. Housing counselors can discuss options that may be available for you to keep your home.
Many agreements can be informal. This means that your lender is aware of steps you are taking to get the mortgage back on track. For example, a lender may even offer to waive late fees for 3 months as a good faith gesture if you can show you can catch it up on your own.
Loss Mitigation
Many lenders participate in special programs, as they could help you retain possession of your home. It also saves the lender numerous foreclosure related costs, including attorney and auction fees. HUD requires lenders to participate in programs for some loans.
A housing counselor can help you determine whether your default is curable. In other words, can you stay in your home?
If so, what options can cure your default? If not, how can the process go more smoothly?
If you are clearly on a path toward losing your home, then you will want to limit the impact of the default. You will need some protection from legal action, additional costs and damage to your credit.
Get Housing Counseling
Contact a housing counselor today for more information. You can get matched with a HUD-approved housing counselor in your area.
