Falling behind on mortgage payments can be a stressful and frightening prospect. It’s important to remember that you’re not alone in this situation. In the United States, millions of people fall behind on their mortgage payments each year. Fortunately, there are steps you can take to get back on track and prevent further damage.
Step 1 – Get Organized
Make sure you have a good understanding of your mortgage documents and interest rate. Your lender can provide you with a loan history statement so you can see the exact amount you owe in principal, interest payments, taxes, and fees. Additionally, you can reach out to your lender sooner rather than later in order to ask about their guidelines for repayment or loan modifications.
Understanding your rights and obligations under your mortgage agreement is essential so that you can make the most informed decisions about your repayment plan. It is important that you regularly review and update your budget to make sure that you are making progress against your mortgage payments.
Additionally, be on the lookout for resources that can help you become current quickly, such as government assistance or refinancing options. Finally, if you need additional help, don’t hesitate to discuss your situation openly with your lender or to seek help from a nonprofit housing advisor.
Step 2 – Talk To Your Lender
It is essential that you contact your lender right away when you are behind on your mortgage payments. Being honest about the situation is the best way to ensure that you get the help you need from them. Let your lender know how much you are behind on your payments, the cause of it, and what steps you are taking to make the payments. Your lender may be able to provide realistic solutions like a payment plan or other arrangements. Taking the necessary steps now will help reduce the chance of losing your home due to foreclosure or repossession.
If you need help coming up with a payment plan, there are several free resources you can use. The Homeowner’s HOPE hotline provided by the Homeownership Preservation Foundation (HPF) is a toll-free service that can connect you with a housing counselor who can provide assistance. Also, many lenders have specialized departments that work with homeowners who are at risk of foreclosure.
You can also look into loan modification plans or other mortgage relief programs offered by the government or private companies. These could help reduce your loan amount or lower your current payments.
Keep in mind that foreclosure and missing mortgage payments can have a negative impact on your credit report. However, pursuing a loan modification instead can help keep your credit rating intact. Also, look into any tax incentives or credits you may qualify for to reduce your monthly payments.
Step 3 – Don’t Forget To Pay Your Other Bills
No matter what you do to try and catch up on your mortgage payments, don’t forget to pay your other bills. Even though it can be the most difficult problem to solve, focusing all of your energy on it and sacrificing other payments will only make getting a loan modification more difficult. It’s important to maintain good credit by staying current on all credit card, utilities, and other debts. Make sure to pay them on time, and you might see better results with your mortgage.
Getting behind on mortgage payments can be overwhelming, but there are steps you can take to get back on track. Take the time to understand your current situation, devise a plan for catching up and contact your lender. Make sure you’re also paying other bills on time. With the right actions, you can take steps to prevent further damage and get your mortgage back on track.