If your mortgage payable date comes and passes and you are incapable of making your mortgage payment because of job loss or another cause beyond your control, do not act as if there isn't a problem by disregarding it. Lift up the phone and call your lender because they can, in all probability, help protect your credit rating and keep you in your home. It is time to renegotiate your mortgage terms.
Whether you are past due on your mortgage payment because of an unforeseen medical condition or because you've been furloughed from your business, one late payment will not cause the walls to come crashing down around you. Communicating with your lender in this situation is of vital importance because it proves to the lender that you are concerned about your credit and making your payment on time.
When you call your lender, they'll likely ask you if you have a short-lived loss of income or if your financial state of affairs is more serious. If you've lost your job, and future payments are in jeopardy, tell them right away because there are some steps you can choose immediately to reduce or prevent the possibility of foreclosure on your home.
Based on the type of mortgage loan you own depends on what measures your lender may or may not be able to take to support you. If you have a conventional conforming loan, several lenders may be able to start studying your fiscal position and working out a resolution that is advantageous both to you and the lender. If your loan is in some way government supported or underwritten, government prescripts may demand that you be ninety days late on payments before your lender will be allowed to discuss alternative options with you. Regardless, you have to communicate with your lender in this type of situation.
Here are seven instances of what your lender may be able to do to support you: 1) Give you an extended time period (possibly as long as one to two years) to get caught up on your payment schedule. This is done by appending a fraction of your unpaid loan payment remainder to your payment each and every month until you can become current on your payments, 2) Dispense with the nagging late payment penalties, 3) Take on a partial payment instead of a full payment, 4) Move your current payment to the end of your loan, giving you the necessary time to get your finances straightened out, 5) Grant you a separate interest-free or low interest personalized loan for the amount of money of your missed payment, 6) Re-amortization or loan refinancing of your current loan, 7) Interest rate or principal reduction of your current loan.
Your lender actually has no interest in foreclosing on your home; they desire your mortgage loan payment instead. While they would prefer that your payment come in each calendar month on time, lenders are very cognizant of many of the fiscal difficulties borrowers are having in making their mortgage payments in a timely manner in these uncertain times. Your lender likely won't volunteer their help, especially if they don't recognize you're having problems making your payments. They cannot read your mind so you must contact them to discuss your present difficulties.
Not all lenders offer borrowers all 7 of these particular alternatives, but your lender most likely has several of these on hand to help you out. You do need to qualify for this type of help from your lender. You may be required to offer substantiation of income loss, as well as a detailed financial statement, but if this required information helps maintain you in your home, its a small price to pay. Wouldn't you rather swallow your pride and make a phone call to your lender if it keeps you from the chance of losing your home?
Visit Home Mortgage Loans and FHA Mortgage Loan to learn more about all things mortgage related.
Tuesday, July 29, 2008
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