Having Trouble Paying Your Mortgage? Remember These Dos And Don'ts
When you closed on your current home, you never anticipated that you would have trouble making your mortgage payment down the road. However, life happens. Unexpected medical bills, a sudden job loss, or other large expenses can put you in a position where you're simply not able to afford your monthly mortgage payment. If you're currently facing this struggle, don't panic. Instead, keep these do's and don'ts in mind. They just might save your home.
DO Contact Your Mortgage Lender Immediately
One of the biggest mistakes people make when they're having trouble paying their mortgage is doing nothing. Believe it or not, your mortgage lender doesn't want you to lose your home; it takes a great deal of time, money, and resources on their part to go through the process of a foreclosure. By contacting them and explaining your situation, you might be surprised at just how much they're willing to work with you in terms of extending due dates and the like.
DON'T Overlook Loan Modification or Refinance
If you don't anticipate being able to resume regular payments on your mortgage anytime soon, consider looking into a loan modification program or refinancing your mortgage altogether. In the meantime, continue paying as much as you can towards your mortgage each month. If you meet certain criteria, a loan modification program can help adjust your mortgage terms to be more affordable, and a refinance can have a similar outcome, assuming you're able to get approved for a lower interest rate.
DO Ask About Forbearance for Temporary Situations
If you anticipate being able to resume paying your bills in the near future, (perhaps you just got hired in at your new job but won't be receiving your first paycheck for another month), ask your lender about forbearance. This will essentially allow you to "pause" your mortgage payments, allowing you to resume them when you're financially able without penalty. Keep in mind, however, that interest will continue to accrue on the money you owe while in forbearance.
DON'T Assume You're Doomed to Foreclosure
Finally, even if you aren't eligible for loan modification or forbearance, it's important to remain calm and not assume you're going to lose your home. Foreclosure is a very long process, and there are plenty of assistance programs and other options (such as a short sale) you can explore to work out a solution with your mortgage lender instead of losing your home. Contact a business, such as Doolin Security Savings Bank, for more information about mortgages.