Having a tough time making your mortgage payments? Find out how to nip this problem in the bud…
You probably don’t need to be told that bad things happen to good people. Or that the world is a tough place. If you think nobody cares just miss a couple of payments. I guarantee your voice mail will be packed with messages…
But what if you are having problems making your mortgage payments?
Well to quote Deputy Barney Fife:
Nip It In The Bud!
I am sure you know that missing mortgage payments is a serious problem. So if you are having difficulty making your payments, it is important to get help right away.
Contact Your Mortgage Lender
I know that it is a serious PITA to deal with the banks. But the first thing you need to do is contact your mortgage lender to explain the situation. Ignoring things is NOT going to work. Sometimes when people are having a tough time, they avoid calling their creditors. This is probably the worst thing to do if you want to keep your home.
You are going to have to swallow your pride and explain why your payment is late. The thing to understand is IF you have a good payment history, the lender may be more likely to consider options for you to repay the mortgage. Plus the fact that you contacted the bank is going to make you look like more responsible and concerned. Which is a good thing in the bank’s eyes!
Brainstorming for a Solution
Hey, maybe you can sit down with a piece of paper and write down several ways to scrape together some money. Maybe you have a relative or a friend who could lend you enough money to pay off your missed mortgage payment? Or maybe you have several friends and relatives that could all pitch in to help?
Sometimes you can even borrow from your insurance policy. Or maybe you can cash in some investments or tap into your retirement account. Maybe you can pawn something or cut back on other expenses that are not really necessary?
I know the option of getting a second job is not very appealing but it is one of your best options for making a quick buck. A part time job is a great way to help you catch up on your mortgage payments.
I MUST mention that you should avoid payday lenders or other short term lenders, because some of them are nothing short of legal loan sharks. Sure there are some good ones out there. Sadly, most of them charge such high interest that it will just make things even worse.
If you are eligible, you may be able to get a loan modification. This is why contacting your lender is the first step you should take. By contacting your lender, they are probably going to be more willing to work with you. Not saying they won’t be jerks about it but hey, we are talking about a bank after all.
When you get a loan modification, it means your bank will permanently change one or more of the terms of your mortgage so that your payments will be lower. The bank might reduce your interest rate. Or they might add the missed payments to the loan balance. Or they could extend the term of the loan.
The Take Away:
Like I said if you are having a tough time making your mortgage payment, then you need to Nip It In The Bud. Don’t freak out or panic. It isn’t the end of the world. Bad things happen to good people. Everyone hits a rough spot in their life at some point.
Just follow this advice to help you deal with the situation and get back on your feet.