Across the country, many homeowners are at risk of losing their homes because they can’t make their monthly mortgage payments. For most of them, a loss of or reduction in income is the issue. Other reasons include expenses that have exceeded income and personal crises like divorce.
The thought of being foreclosed upon is both alarming and devastating, but there are steps you can take to address your mortgage payment challenges before they reach that point. Five of them are listed below.
Contact Your Lender
In most cases, people know that they’re not going to be able to make their mortgage payments long before the bank does. Instead of hiding from the problem, contact your mortgage provider to discuss the situation.
You may be embarrassed to admit that you’re having difficulties, but your lender has definitely heard from people in similar circumstances—probably hundreds of them. The sooner you reach out to them, the sooner they can help you come to a solution, such as a loan modification, in which they agree to change the original mortgage terms.
Create a Budget
Take a closer look at how your money is being spent and cut unnecessary purchases until you are on more solid financial ground. Do you really need the newest phone model right now? Is it necessary that you buy Starbucks every day? Financial recovery requires you to ask yourself questions like these and make spending decisions that you may not be happy with now, but will support your success later on.
Look at Refinancing
If your mortgage interest rate is high by today’s standards, refinancing can make your monthly payments more affordable. Ideally, you should pursue this option before missing any payments as a clean refinance is easier to arrange. Just be prepared for a lot of paperwork, as the lender will want proof of income, bank statements, and more.
If your lender is not willing to renegotiate the mortgage, contact a broker to see if they can find another lender who is more open to assisting you. There may be penalties for breaking the mortgage, but the resulting savings would outweigh them.
Contact an Attorney
If you’re facing foreclosure, an attorney can help you negotiate with your lender and see if the loan can be amended or an agreement made so that you can keep making payments you can comfortably afford. An experienced foreclosure defense attorney has the experience and knowledge to protect your rights and come up with a new loan arrangement that is both fair and legally binding.
File for Chapter 13 Bankruptcy
If you are struggling with your debt situation overall, filing for Chapter 13 can help you both reorganize your debts and save your home from foreclosure. You can repay any arrears over the term of the three to five-year repayment plan.
If you are having problems making your mortgage payments and you’re worried about the possibility of losing your home, call Attorney B. David Sisson at (405) 447-2521 for a no-obligation consultation. We will review your options and provide you with the best foreclosure defense for your situation.