Pending Foreclosure? Take Action!

Pending Foreclosure? Take Action!
  • Opening Intro -

    What you don't want to do if you have fallen behind on mortgage payments is to ignore the notices sent from the mortgage company demanding payment.

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If you have fallen behind on your mortgage, than you know that this isn’t a good thing, however it could be one problem that you simply could not have avoided. These days, the loss of a job or some other setback can work against you, causing you to miss several of your monthly mortgage payments in no time.

Out Of Your House And Into The Rental Market

If your home is foreclosed, then you will be faced with moving to a rental property and seeing your credit rating damaged. Yet, if you look a little closer, there could be a diamond in the rough that just may see you through your current plight.

What you don’t want to do if you have fallen behind on mortgage payments is to ignore the notices sent from the mortgage company demanding payment. Some homeowners become terrified when receiving these kinds of notices that they simply put them away as if putting off the problem will make it go away. Not a lot of good that will do!

Confronting Your Financial Problems Head On

Instead of ignoring the problem, facing it head on will actually help you in the long haul. It might even help you uncover that diamond in the rough I alluded to earlier.

For example, mortgage companies are not in the business of putting homeowners out of their houses. Instead, they will sometimes work with homeowners to see what options are available. This could mean that they’ll accept a deferment in payments or some other temporary easement to give you much needed breathing room.

Work With Your Lender

Lenders understand that you have a lot to lose if you cannot keep your home while they stand to lose tens of thousands of dollars if they must foreclose on your home. Therefore, a professional lender will explore every option available to help you stay in your home.

Although not required to do so, a lender may recommend refinancing your mortgage particularly if your financial condition shows sign of improvement (e.g., a new job, large tax refund, inheritance, etc.) She may recommend that you take out a thirty year mortgage even though only 25 years remains on your original loan. That way your monthly payments could be a lot lower and much easier for you to handle.

Remember, you still have some options available to you, but this isn’t the time for you to shrink back in fear. Contact your lender if you have fallen behind on payments and explain your situation. Avoiding the issue will work against you, but by weighing your options with the help of your lender, you may be able to get through all of this with your homeownership in place.

Adv. — Are you looking to refinance your home? Interest rates are at low levels! If you have very good or excellent credit, you could find a home loan with an interest rate of about 4% for a fixed rate, thirty-year mortgage.  Visit our financial guide module for more information!

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Categories: Home Financing