With the weakening national economy and high unemployment rate, some Americans are dealing with mortgage lenders wanting to foreclose on their homes because of unpaid monthly payments.
Homeowners can stop foreclosures on their properties, especially with falling home values, but they need to act the moment they start to experience financial difficulties.
If you are having trouble paying your mortgage payment, it is important to speak with your mortgage lender immediately. With the high number of homes in foreclosure, mortgage lenders will most likely work with you and help you find a way to keep your home so they will not be burdened with another foreclosure. They are in business to lend money and not to sell real estate.
Before you call your mortgage lender, be ready to discuss your financial difficulties. They will want this information so they will be able to come up with some sort of payment arrangement until you get back on your feet. There are a number of ways your lender may be able to help your situation. Some will offer a forbearance which would put the past missed payments at the end of the loan or allowing you to skip a month or more without the mortgage payments being reported as late on your credit. If your home has equity available, the lender may recommend you to refinance your loan to reduce the monthly payments. If you have already missed payments, they may offer to add the past due amount into the new loan.
Another alternative is to sell your home and find one with lower payments. If your home sells, it may allow for you to pay the mortgage balance and your delinquent debt and prevent a foreclosure.
When all other options fail, declaring bankruptcy can also be considered. Filing for bankruptcy will halt foreclosure proceedings until the bankruptcy is resolved. This may allow you to keep your home, but it will damage your credit.
Remember, if you foresee a potential problem or are already behind on your mortgage payments, it is important to contact your mortgage lender immediately so they can help you with a solution.
Find your state below for more information on home foreclosure laws:
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