ALL >> Real-Estate-and-Foreclosure >> View Article
What To Do If You Get Behind On Mortgage Payments
In these difficult economic times, even the most persevering of homeowners may find it difficult to keep up with their mortgage payments. With a faltering job market, increasing unemployment, and tightening restrictions on credit, mortgages are frequently falling into arrears.
The growing number of home foreclosures has been in the forefront of recent news, and many people are facing the frightening possibility of losing their homes.
For those who find that they cannot meet their monthly expenses and are falling behind on their mortgage payments, it is vitally necessary to take action before the lender exercises the right to foreclose on the property.
What to do in this case depends on the specific situation, but the most important step, one which applies to all circumstances, is to communicate with the lender. A simple phone call will let the mortgage holder know that you are willing to work together to resolve the past due balance; ignoring letters and phone calls gives the impression that you have no intention of rectifying the situation. While it can be intimidating to initiate a conversation with the ...
... bank or other lender who holds your mortgage, most lenders are happy to try to find an alternative to foreclosure.
Particularly in cases where there is little equity in a property, it is important to remember that the lender prefers not to take possession of the home. Foreclosure is a costly process, and the lender is unlikely to cover the expense with the sale of the property. Therefore, banks and mortgage companies are very likely to try and work with you to cure the delinquency on the mortgage.
Many lenders offer some type of forbearance agreement. One type of forbearance allows borrowers to make slightly higher monthly payments until the past due amount is recovered. Another alternative is to work out an agreement where payments are reduced or eliminated for a certain period of time, to be recouped at a later date (with interest).
If your situation does not allow for this possibility, it may become necessary to sell the property. While this is not ideal in the current real estate market, it is preferable to losing your home to foreclosure.
Again, it is not possible to over-emphasize the importance of contacting the lender who holds your mortgage. If you remain silent and do nothing to help yourself in this situation, the bank or mortgage company will eventually have no choice but to initiate foreclosure.
About the author: Nicholas writes for debt problems advice site http://www.debtnation.co.uk/ and you can read more on mortgage arrears at http://www.debtnation.co.uk/missed-mortgage-payments.html
Add Comment
Real Estate and Foreclosure Articles
1. Top 5 Benefits Of Using An Asphalt Drum Mix Plant For Your Construction ProjectsAuthor: Gopesh Thakkar
2. Unlocking Financial Growth: Why Learning To Buy Property With Super Matters
Author: Rick Lopez
3. Why Community Living Is Important For Senior Citizens
Author: Naiknavare Developers
4. The Best Realtor In Edmonton With Impeccable Negotiation Skills
Author: Haupt Realty
5. Invest In Industrial Property In Bhiwadi: The Emerging Business Hub
Author: Shankar Estate
6. Acreages For Sale Parkland County: For Long-term Objectives
Author: Haupt Realty
7. Why Choose A Professional Dallas Real Estate Appraiser – The Expertise Of Metroplex Appraisers
Author: Lyan Martin
8. Things You Should Weigh When Choosing Property Management: Do It Yourself Or Hire One
Author: sahasra
9. Buy & Sell Edmonton Real Estate Popular Hub
Author: bestedmonton
10. The Significance Of The Central Edmonton Homes For Sale
Author: Haupt Realty
11. Why Underbrushing Is Essential For Maintaining Houston Properties
Author: Texas Ace Land Clearing
12. Finding The Right Property Dealer In Bhiwadi: Your Guide To Smart Real Estate Investments
Author: Shankar Estate
13. Best Villa Plots In Chikkaballapur, Bangalore: Your Ultimate Guide To Investing In Prime Real Estate
Author: Terra Spectra
14. Property Investment Advisor In Brisbane To Make Property Investments
Author: Rick Lopez
15. Spacious 2bhk Apartment In Coimbatore For Rent
Author: Aafiya