There Are Options if you Cannot Keep Up With Mortgage Payments

There are Options if you Cannot Keep Up With Mortgage Payments

By Sandy Flores        

Special to Excelsior

It is important to know that if you are in a financial situation that allows you to continue your mortgage payments, either partially or completely, keep in mind that it is important that you contact your bank immediately.

For banks is not financially profitable seize your property. Financial institutions will do everything in their power to help you avoid repossession. Keep in mind that banks do not want the property back, are not in the business of selling properties.  Do not assume that your problems are corrected quickly, without you doing anything about it.

The Treasury Department of the Government of the United States aims to lenders and their customer service agents reach a compromise, urging financial institutions to work aggressively to help borrowers facing financial problems. Establish direct communication with your bank to discuss your personal financial situation and seek appropriate help as soon as you repair that can not make your payments.

There are many options and alternatives that your bank can explore and that can definitely benefit you. When contacting your bank, be prepared and be ready with your personal information, such as monthly income, financial obligations, monthly expenses, tax returns, statements of most recent bank statement and a brief explanation of the financial situation you are experiencing and how it is affecting you.

The sooner you call your bank, the sooner you will get help! If you ignore letters or phone calls from your bank, then this will start the process of legal action leading to Foreclosure.

The FHA is ready to help! You can talk with a counselor approved FHA. Find out which of the various options and alternatives can benefit you and your family based on your circumstances. Protect yourself from the negative impact on your credit, before they have accumulated a considerable number of arrears. Do not minimize the importance of maintaining a good credit report. This will reflect your future ability to purchase and acquire items, rent or purchase a home, or other goods that require a good credit history.

If your problem is temporary, you may opt to discuss the possibilities of restoring your loan. The bank may be willing to accept total amount you owe in installments or in a specific and particular date.

Another option would be to reduce your monthly payments for a specified time, or maybe the suspension of payments for a short period to enable it to catch up financially.  If it appears that your financial situation will affect their long-term ability to acquaint your debt, there are other possibilities to avoid Foreclosure. The bank may authorize the sale of property for less than the amount you owe. Also expect me to consider the services of a real estate professional who can aggressively market the property for sale PRE-Foreclosure or Short Sale. This alternative does not allow you to keep your property, but is less damaging to your credit.

Protect yourself from false promises! Borrowers facing unemployment and / or foreclosure are often targets of predatory lenders that offer you to find any “solution” that may not be beneficial to you.  Homeowners get many “deals to effect a modification or refinancing” with typical saying already “Pre-approved” for the amendment, guaranteeing a monthly payment PRE-set or a credit based on the equity in their homes.

DO NOT SIGN any document or contract you do not understand. It is your obligation, right and responsibility to ask questions and get clear, accurate answers.  Information is your best defense against becoming a victim of mortgage fraud.  The Federal Trade Commission (Federal Trade Commission) works for the consumer to prevent fraudulent, deceptive and unfair business practices and to provide information to help consumers spot, stop and avoid them.

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