What to Do If You Can't Make Mortgage Payments

A lot of homeowners live paycheck to paycheck, and tomorrow is never promised. There will be times that the month’s finances can get tight, and it’s tempting to skip a payment thinking you can pay it back once you get back on track. Don’t fall for this reasoning, as life will still happen and things can come up, pushing you even further behind.

Being passive to your finances is not a good approach because it can have a major impact on your life. The best thing you can do is be proactive and honest with your creditors.

Being honest

The best thing you can do it help yourself is contact your creditor/lender about a delinquent payment. Write them explaining your hardship, and the reason for your inability to make a payment.

Admitting the fact you cannot make your mortgage payment will serve you better in the long-run than trying to hide it.

Don’t wait too long

Chances are the longer you wait to disclose your financial struggles to your lender, the less lenient they will be with you. Nobody likes someone who is withholding information especially when it comes to business deals, so do yourself the favor and let it be known as soon as you can.  

Educate yourself

If this isn’t your first missed mortgage payment, you need to find loan assistance quickly. There are rules restricting dual tracking that offer such help.

Dual tracking is when a lender forecloses a property while considering a loan modification. The Consumer Financial protection Bureau outlawed this practice during the 120-day period after the default.

This rule protects the homeowner when they go into foreclosure. The only violation you can get yourself in trouble in is if you destroy the property, which will end up with you in a lawsuit.

Chase all options

Check to see if your state has programs that help assist stressed homeowners with their mortgages.

The Hardest Hit Fund was created in 2010 for homeowners that struggle to make their payments to relieve the foreclosure effort.

Not all states have this program, or ones like it, but those that do greatly help people stay in their homes. They focus on two groups of people; unemployed homeowners looking for work, and homeowners who are upside down on their payments, meaning they owe more than the home is worth.

Don’t expect miracles

Informing your bank about struggling payments is a good start, but they may or may not show mercy. If you truly hit a hardship and the future payments become compromised, chances are you will be “handed off” and put into foreclosure where your notices will be sent by mail.

Be proactive

Not acting can send the message to lenders you have an apathetic attitude about your finances. Lenders don’t want to lose money, so they are more than willing to work with homeowners. If they don’t know what’s going on, they will assume the worst.

Waiting too long to ask for help can leave you up the creek without a paddle. If you believe foreclosure is in the future, call an attorney that specializes in these matters.

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