4 Steps That Will Help You Get Caught up on Your Mortgage Payments
Falling behind on mortgage payments can happen to anyone. There are countless reasons as to why this may happen, from losing a job, getting a divorce or serious illness or injury, and this is often out of the hands of the individual.
There’s no shame in missing a mortgage payment as almost everyone has gone through periods of financial hardship, but it is vitally important to try and get caught back up on your mortgage payments as soon as possible to avoid foreclosure.
Here are 4 steps you can take to help get caught up:
1. Contact Foreclosure Avoidance Counseling
To help people facing foreclosure due to struggles with mortgage payments, foreclosure avoidance counseling hotlines are free to contact and can provide invaluable information on steps to take that will help get caught up on your mortgage payments.
These agencies are approved by HUD so they can be trusted as a reliable form of counseling, and there is a wide range of counselors available to help, so finding one that can assist your particular situation is certainly possible.
Another helpful step to consider is forbearance on your mortgage. This is offered by every mortgage lender and can help to delay foreclosure providing a special agreement can be made between you and your lender.
To request forbearance, you will have to explain your situation and provide a strong reason for missing payments, and if an agreement can be made, the lender will delay the right to foreclosure for an extended period so you can attempt to catch up on payments within a specified time frame.
3. Speak with your lender
Despite what many believe, your mortgage provider doesn’t want foreclosure, as it is an exceptionally expensive, complex, and time-consuming matter. For them, it will be easier if you can make the payments again, so they will look to cover any areas that may help you get caught back on your payments.
For example, they may be able to refinance your mortgage so that the repayment rates are more affordable, while a repayment plan is another popular option. Always be sure to contact your lender to discuss your options, and never avoid them if they are attempting to make contact.
4. Loan Modification
Should you speak with your lender, one suggestion they may make that could be a massive help in getting caught up with missed mortgage payments is a loan modification.
Any loan can be modified, and sometimes this is the only course of action to ensure you can continue paying the loan, so many lenders will consider this option. Remember, many people cannot keep up with their payments due to strict terms of the loan, but a lender may be willing to consider a modification in some cases.
One way in which this is done is by recasting the debt, which is common for fixed rate mortgages. This essentially means the duration of the loan is extended over a now longer period, but with a lower monthly bill.
So, while you will be paying for the mortgage for much longer than your original agreement (you’re essentially restarting the term of your loan again) it does give the opportunity to actually make the monthly payments, which is what most lenders want!
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