Of Prime Interest: Solutions to deal with mortgage payment issues

Act quickly with your mortgage lender to avoid foreclosure on your home.

  • Nov. 11, 2015 7:00 a.m.

Are you encountering financial difficulty and keeping up with your mortgage payment obligations is an issue?

There are ways to avoid default and keep your home if unforeseen financial circumstances impact your financial ability to make regular mortgage payments.

It is important for you to take quick action. Early intervention, cooperation and a well-executed plan will go a long way to working together with your mortgage lender to avoid foreclosure. on your home.

Have you or your spouse lost employment and are no longer make as much money? Search for a way to make up your payments and continue fighting to make your payment on time every month. You have to find and incorporate a solution to decrease your expenses and increase your income.

An additional job or selling possessions to raise funds to assist with payments are a couple of options to consider.

You may temporarily have to cut back on non-necessities for a short time. If you have a lower level or spare bedroom, consider renting it to increase your monthly cash intake.

When you have issues keeping up with your monthly mortgage payments, contact your lender quickly and explain your situation.

Lenders generally don’t want to see a long and costly foreclosure procedure transpire. They will work with you to come up with a practical solution.

They might suggest extending your mortgage term to reduce your monthly payments, or look at an interest-only line of credit mortgage.

The disadvantage associated with these two options is you won’t be reducing your principal owed but that is the trade-off for getting through a difficult financial period and finding a way to keep your home.

If you have decent equity in your home, you could also talk with your lender about refinancing options such as extending the amortization to reduce monthly payments.

Another option is to sell your home and downsize. You could buy a less expensive home or temporarily rent until your circumstances improve.

You do not want a foreclosure proceeding to be registered on your credit history. That could have a negative impact on you for years to come.

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