• Make Your Mortgage Payments – If you find yourself in a pickle and unable to make your payment, call your lender immediately! The key is to talk with your lender BEFORE you are late. Generally, if you call the lender before you are late they will allow you some extra time to make the payment or work with you on the best solution for your circumstances. Once you go past that payment date, and you haven’t contacted them you will be considered late and you may have missed your chance to smooth things over with the lender.
• Know the Effect of a Foreclosure – If there seems to be no way out for you and Foreclosure may occur, before you allow it to happen ask questions. Contact your lender and ask them what will happen to your credit score and history - make sure you fully understand the repercussions.
• Keep Credible Notes - When talking with your lender it is very important to take detailed notes about your conversations. Things to keep note of would be: Who you spoke to, What is their title, What was discussed, What time and day did you speak to them, What was the outcome of the conversation? etc. Another important thing is if you feel as though the person you are talking to is not someone that is going to be able to assist you with your needs and questions, demand to speak to their superior or another department that handles situations like yours.
• Ask What Your Options Are – Talk with your lender and ask them what your options are other than Foreclosure and if there is any way they would be able to refinance your loan in order to make the payments more manageable. Ask if they will allow Forbearance on your mortgage. This is when the lender will temporarily suspend or lower your monthly payments to assist you with catching back up.
• Manage Your Budget Wisely – Even that “Starbucks” coffee you get a “couple” times a week can add up. Sit down and review your finances, look at where your money is going and what “things” you can cut out on to put towards getting your mortgage payments back on track.
Written by Shawn McDonald.
1 response so far ↓
1 Jayson // Apr 9, 2008 at 2:41 pm
All great tips and things that I’ve heard are true. Lenders are generally willing (especially now) to help out homeowners and avoid foreclosure. Lenders don’t want to foreclose on a property and will usually work with a borrower as much as possible to give them the assistance they need - it is best to call them and let them know you need help.
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