If you are becoming increasingly behind on mortgage payments, there are a few options you can try before considering foreclosure.
No one wants to think that they may have to consider foreclosure, but in today’s economy it is becoming an all too harsh reality. Setting up a meeting with your loan provider to discuss your options is the first step to prevent falling further and further behind in debt.
If you are behind on payments, but only temporarily, you might discuss a reinstatement plan. The reinstatement plan is a way of paying back the past-due amount with any late fees and penalties but, on a date you both agree on. This way you can divide the late payments by the months allotted and not be charged any more fees. Once the loan provider is confident you will be making up all late payments all while making your mortgage payments, they will gladly help get you back on track.
During the meeting, you may also want to discuss the option of an entirely different loan plan. This is a loan modification. If changing the terms of the mortgage contract will make it easier for you to make the payments, your lender may be very willing to work with you. It may include lowering the interest rates or extending the terms of the loan, which will lower the monthly payments.
Lenders really don’t want to see you have to foreclose on your property. So, don’t simply consider it a lost cause. Work with them, show them all your financial obligations and together you may be able to work out a plan and keep your home.
No one wants to go through the process of leaving their home, so be sure to review all the options available to you. The Real Estate Resources Team at Remax is here to help guide you through every step of the decision-making process as you figure out the next steps for your home. By scheduling an appointment, we can discuss topics like your home value and potentially having it bought for cash. No matter what lies ahead for you as a homeowner, the Real Estate Resources Team at Remax would be happy to guide you in the right direction.