With home values dropping in recent years and other circumstances you may find yourself in trouble when trying to make your mortgage payments. There are some steps to take to prevent foreclosure on your home.
With the extra work and costs related to foreclosing, many lenders will work with you to keep you in your home instead of foreclosing on it. They will have costs such as upkeep and reselling it in additional to the other fees.
If you are finding if difficult to make your mortgage payments contact your lender as soon as possible. If it is a temporary situation such as medical expenses or other large expenses, some lenders may work with you to come up with a payment plan with lower payments for a certain amount of time.
In most cases, it will be easier to refinance or modify your mortgage if you are current with your payments. Once you start getting behind with payments, it may be more difficult to get out of trouble and the amount due will add up quickly.
It is also important to sit down and take a look at where your money is going and which expenses can be cut down on or omitted until you get back on your feet financially. It may be a sacrifice to cut some of your expenses, but it may be worth it if it means keeping your home. Furthermore, you will have additional expenses of moving and finding a new place if your home is foreclosed.
There are a number of government programs available to assist homeowners who are at risk of foreclosure. You can contact your local lender to see which program may be available to you.
The Making Home Affordable (MHA) Program allows homeowners to lower their monthly mortgage payments and get into more stable loans. There are also programs to modify or refinance your loan to lower payments to make it easier to be able to make your mortgage payments. The typical loan modification results in a 40 percent drop in a monthly mortgage payment.
There are also programs for unemployed homeowners and homeowners who are “underwater” with their mortgage. The term “underwater” means you owe more on your mortgage than what your home is worth.
If you are having difficulties paying your monthly mortgage payments, there may be steps you can take to prevent foreclosure. There are a number of programs to help homeowners stay in their homes.