Home Mortgage - Avoid Foreclosure
When it comes to your home mortgage, it is paramount that you have a clear financial
picture of not only where you are today, but also where you will be, at the minimum, 3
months into the future.
Most negative credit issues are the result of illusions of false security and failure to properly
plan financially for unexpected events.
The day you get fired, laid-off, or demoted should NOT be the day that you begin to take a
good hard look at your debt.
I believe that when you apply for a home mortgage, we should have a higher level of
awareness and develop a sense of prognosticating our futures.
By taking this approach, you will be better prepared if you ever need to look for mortgage
refinance. It will also help maintain a solid credit report and be able to avoid ever having to
deal with late payments, foreclosures or any other bad debt issues that would lead to
foreclosure.
If you are not in the practice of giving yourself a financial check up, I suggest that you begin
today and continue to do so every weekend for at least 2 months then every two weeks
and eventually at the beginning of each month. At the very least, make it an appointment to
perform a financial check up at the first of each month.
If married, both spouses must be involved regardless if one is bringing in the cash and the
other is not.
picture of not only where you are today, but also where you will be, at the minimum, 3
months into the future.
Most negative credit issues are the result of illusions of false security and failure to properly
plan financially for unexpected events.
The day you get fired, laid-off, or demoted should NOT be the day that you begin to take a
good hard look at your debt.
I believe that when you apply for a home mortgage, we should have a higher level of
awareness and develop a sense of prognosticating our futures.
By taking this approach, you will be better prepared if you ever need to look for mortgage
refinance. It will also help maintain a solid credit report and be able to avoid ever having to
deal with late payments, foreclosures or any other bad debt issues that would lead to
foreclosure.
If you are not in the practice of giving yourself a financial check up, I suggest that you begin
today and continue to do so every weekend for at least 2 months then every two weeks
and eventually at the beginning of each month. At the very least, make it an appointment to
perform a financial check up at the first of each month.
If married, both spouses must be involved regardless if one is bringing in the cash and the
other is not.
At the onset of knowing that your
income is about to be interrupted for
whatever reason, you must begin to
take positive appropriate action to
maintain your credit report. If you
determine that your cash flow will be
a short-term problem, it is
imperative that you become pro
active in communicating with your
lender in an effort to find a solution
and make them aware that this credit
issue, though urgent, will be only
temporary.
Some short-term options may be:
income is about to be interrupted for
whatever reason, you must begin to
take positive appropriate action to
maintain your credit report. If you
determine that your cash flow will be
a short-term problem, it is
imperative that you become pro
active in communicating with your
lender in an effort to find a solution
and make them aware that this credit
issue, though urgent, will be only
temporary.
Some short-term options may be:
- Deferring or waving late charges
- Temporary reduction of interest
- Temporary reduction of payments
- Suspending payments
If you feel your credit situation will be long term, your lender may require a more formal
process commonly known as a mortgage workout.
Some work out options you may want your lender to consider are:
process commonly known as a mortgage workout.
Some work out options you may want your lender to consider are:
- Reduce or suspend your payments for a specified period of time and then add a
portion of your missed payments to later on to your regular payments - Extend the length of your loan
- Suspend principle payments and allow payments of interest, taxes and insurance
Your lender will want to know specific information about your financial and credit situation.
You must be careful not to describe your situation in a way that is so dire that you will push
your lender to be cautious and wary to agree to any credit terms. I suggest that you be
prepared before contacting your lender with the following:
You must be careful not to describe your situation in a way that is so dire that you will push
your lender to be cautious and wary to agree to any credit terms. I suggest that you be
prepared before contacting your lender with the following:
- An assessment of your current financial credit situation
- A reasonable budget for your future
- Your financial plan for dealing with paying your essential debts such as utilities and
car payments - A letter prepared that you will mail to the lender explaining why you are expecting to
fall behind or why you are behind. Be careful that what you say to your lender and
what you put on paper are the same. - Information about the property and its value
- Information about your mortgage loan and the amount of the default
It is important that you stress the sympathetic aspects of your financial situation. However,
it is also important that you express confidence in your tone when talking to your lender. DO
NOT agree to any credit terms that you know you cannot meet in an attempt to pacify the
lender or to simply relieve some of the pressure on yourself. If you do, you just may find
yourself in a worse position than you were before and can definitely be very costly in the
end.
If you feel your situation is too far gone, stay in control and seek out a competent attorney.
You may feel so desperate that you may sign up with an attorney that may not be right for
you or may charge outrageous fees. There is a solution to every problem. Stay focused on
your goal, stay in control and know what you want.
God Bless.
For counseling information contact:
HUD approved counseling agencies: 800-569-4287
Fannie Mae Resource Center: 800-732-6643
Freddie Mac: 800-373-3343
it is also important that you express confidence in your tone when talking to your lender. DO
NOT agree to any credit terms that you know you cannot meet in an attempt to pacify the
lender or to simply relieve some of the pressure on yourself. If you do, you just may find
yourself in a worse position than you were before and can definitely be very costly in the
end.
If you feel your situation is too far gone, stay in control and seek out a competent attorney.
You may feel so desperate that you may sign up with an attorney that may not be right for
you or may charge outrageous fees. There is a solution to every problem. Stay focused on
your goal, stay in control and know what you want.
God Bless.
For counseling information contact:
HUD approved counseling agencies: 800-569-4287
Fannie Mae Resource Center: 800-732-6643
Freddie Mac: 800-373-3343
- Short Sell your property. Which means to allow you to sell the property for less than
you owe and the lender will waive the rest
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