The fact is, few of us ever anticipate encountering financial troubles or problems paying our bills, but unfortunately, sometimes life happens. Although we are good at believing it will never happen to us, once in a while the worst occurs, and we have to take a moment to address hard questions.
If you own a house, with a large mortgage on it, and suddenly you or your spouse has lost a job, how will you pay your monthly mortgage payments? First, don’t panic. There are a number of things you can do right off the bat.
First, get in immediate contact with your lender, and not just with any low-level customer service representative. You want to honest
ly and candidly talk to someone with legitimate decision-making power. Most lenders want to try and work with you, so they don’t have to evict you or carry your house until they can sell it.
Temporary Indulgence. In this situation a lender may grant you a certain period of time to resolve the delinquency. This period will generally not run any longer than three months. This is, however, short term relief, and at the end of the period, your loan must be brought current.
Repayment Plan. Here, a repayment plan is produced in a written document and signed by both lender and borrower. The borrower is generally given a fixed period of time to bring the mortgage current. This will generally be done by making payments in excess of the monthly payment.
Special Forbearance. Finally, a borrower could have their regular monthly mortgage payment reduced or suspended for a period of time (up to eighteen months) under a special forbearance relief program. At the conclusion of the period, regular monthly payments would resume.
Other solutions include everything from a short sale to a bankruptcy, but ideally, you want to stay in your home. In the end, if you are experiencing trouble, make sure to always contact your lender. There are ways to get out from under the strain without losing your house.