By: Annmarie Garcia - Coldwell Banker
http://www.alwaysannmarie.com/
For all of us, there are times when it is extremely difficult to pay our bills. One of our most significant monthly bills is our mortgage payment. When you are having difficulty with or cannot make a mortgage payment here are some options you may want to consider.
Call and speak to the Loss Mitigation Specialist at your mortgage company. Please be candid and tell them about your hardship. It is possible to work out a loan arrangement with mutually acceptable terms. Please document your discussions and send the bank’s Loss Mitigation Specialist the letters referencing the people you have spoken to.
If your financial problems are temporary, you may be able to work out a plan with the bank to help you get back on track. Your bank may allow you to skip a few payments or make partial payments (and add them on to the back of your loan) or the bank may restructure your current loan so it is easier for you to make the payments. These types of loan workouts allow you to maintain your credit, stay in your home and prevent foreclosure but you must call the bank as soon as you miss a mortgage payment. Do not wait!
If you face long term financial difficulties which are not likely to go away, there are other options. The bank may give you time to sell your home, allowing you to pay off the loan with the proceeds from the sale. If you owe more on your home than your home is worth, the bank may agree to a "short sale". This is when the mortgage company accepts the price you have obtained from a buyer. Sometimes the bank will accept your home's deed rather than go through the cost of foreclosing on your loan.
Also, you may call a HUD approved credit counselor or (800) 569-4287 or visit http://www.hud.gov/offices/hgs/sfh/hcc/hcs.cfm for a list of approved counselors in your state.