Failing to make one or more mortgage payments is worrying enough in and of itself, but it can also have a negative effect on your credit rating. If you miss several payments, it’s likely your lender will begin foreclosure proceedings. Though this sounds dire, all is not lost – there are options that can help you stay on top of things and keep your home.
If you’re having trouble paying your mortgage, don’t panic. Instead, follow the steps outlined below (sooner rather than later) to end the struggle and get back on track.
1. Apply for a loan
If you’ve recently experienced a financial setback and are having trouble meeting your mortgage obligations, you may want to consider applying for a loan to make ends meet.
Certain loans, like fast cash loans, give you the money you need without high-interest rates, so you have a better chance of staying on track. These types of loans often come with flexible repayment plans that are easy to stick to.
2. Contact your mortgage lender
Ideally, you’ll want to contact your lender before you miss a payment. Doing so before any delinquency takes place lets them know you’re serious about rectifying the situation. Your lender can give you options that will help you avoid a negative credit rating and foreclosure.
3. Understand your options
Believe it or not, most lenders want to help you. They aren’t in the business to lose money, so it’s in their best interest to make sure you make your payments on time, one way or another. Mortgage lenders have a lot of tools at their disposal to help you make your payments. They include:
- Loan modification
- Repayment plans
- Short sale
- Deed in lieu of foreclosure
It’s important you understand each of these options and how they may or may not be right for you. This leads us to our next step.
4. Contact a HUD-approved housing counselor
The Department of Housing and Urban Development (HUD) has trained housing counselors to help you understand your options and reach a satisfactory outcome. A HUD counselor can help you find out if you qualify for any additional assistance, help you understand the options presented to you by your lender, determine which avenue might be best for you, guide you through the paperwork required by your lender, and assist you with budgeting and credit card debt if needed.
5. Be leery of scams
All the help you need to avoid foreclosure and get back on track with your mortgage payments is available to you at no cost through your mortgage lender or a HUD-approved counselor. If anyone tries to tell you they will help you avoid foreclosure for a fee, it’s likely a scam. These companies often take your money and then do nothing to lift you out of your financial jam.
Signs of a scam include:
- A demand for payment upfront
- A guarantee they will get the terms of your mortgage updated
- If they ask you to sign over the title to your home or to sign unclear or confusing documents
- You’re told to send payment to someone other than your mortgage company
- They tell you to stop making mortgage payments
- They offer a forensic audit
- They say they are affiliated with the government
During times of financial strife, it’s easy to fall prey to scam artists, but when your house is at stake, it’s vital that you don’t just take everyone at their word. Always err on the side of caution.
If you’re struggling to make your mortgage payment, follow the steps above to get back on track.