By: Dean Lusk
A loss of a job, death in family, medical expenses and other
life-altering situations can happen to anyone, causing us to
fall behind in our mortgage loan payments. If we neglect paying
our credit cards it hurts our credit rating; if we neglect our
home loan payments the lender will foreclose, and repossess
our home.
We
are often embarrassed to talk about our money problems, but
that approach doesn't solve anything. Put your pride on hold
and get serious about avoiding foreclosrue.Contact your lender
as soon as you know your payments will be late. Never ignore
the lender's letters and do not assume you are in a hopeless
situation. Lenders do not want to foreclose, and will usually
work with you to get your account back on track.
Below are Solutions for Temporary Problems:
1.Reinstatement
When you are behind in your payments but can promise a lump
sum to bring payments current by a specific date.
2.Forbearance
You are allowed to delay payments for a short period, with
the understanding that another option will be used afterwards
to bring the account current. Lenders sometimes combine Forbearance
with Reinstatement if you know you'll have the funds to bring
your account current by a specific date.
3.A Repayment Plan
If your account is past due, but you can now make payments,
the lender may agree to let you catch up by adding a portion
of the past due amount to each currentmonthly payment until
your account is current.
Solutions for Longer-Term Problems
1.Mortgage Modification
If you can make your regular payment now, but cannot catch-up
the past due amount, the lender may agree to modify your mortgage.
One solution is to add the past due amount into your existing
loan, financing it over a long term. Modification might also
be possible if you no longer have the ability to make payments
at the former level. The lender might modify your mortgage
to extend the length of your loan, or take other steps to
reduce your payments.
2.Selling Your Home
If catching up is not a possibility, the lender may agree
to put foreclosure on hold, giving you some extra time to
attempt to sell your home.
3.Deed in Lieu of Foreclosure
The lender may allow you to give-back your property, in turn
forgiving the debt. This does negatively affect your credit
record, but not as much as a foreclosure. The lender may require
that you attempt to sell the house for a specific time period
before allowing this option; the option may not be possible
if there are other liens against the home.
http://www.wesellhomesdfw.com
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