• Backwards in Your Mortgage: 5 Steps to Get Back on Track

    Sometimes we all have financial setbacks that make it very difficult for us to stay current with our bills. Whether it’s our mortgage, car payments or our credits cards – sometimes, it can be very difficult to pay these bills on time. One of the biggest financial concerns that most people have is not being able to stay current with their mortgage. There’s nothing more terrifying than imagining being evicted from your own home. Here are five steps you can do right now in order to get back on track to paying your mortgage.

    Talk with Lender

    One of the first things you should do immediately in order to get back on track with your mortgage is talk to your lender. Let your lender know your current financial situation. Smaller and more personable lending institutions may have some show some degree of leniency in order to allow you to stay in your home. Besides, the eviction process is very expensive for lenders to pursue, so they rather work with you rather than just simply kick you out of your home.

    Refinance

    Another option you should explore is looking at refinancing your home. Often times, when we initially borrowed a loan for hour home, we get locked into varying interest rates that can suddenly change and make payments unaffordable. If you are a former or current US servicemen, you should definitely look into low VA rates for refinancing your mortgage. 

    Reach out to Community Development Corporations

    Another next step you should take is to talk with a local community development corporation to see if they offer any sort of home ownership counseling services. They may be able to connect you with nonprofit lenders and other institutions that help financially struggling homeowners get current with their mortgages. They will also educate on you on

    Repayment Plan

    If you began the process of reaching out to your lender to communicate to them your current financial situation, ask them if they are willing to offer you some sort of extended repayment plan to help you get current with your mortgage. Again, depending on your payment history, lenders may be willing to work with you because they rather see you stay and pay off your mortgage versus having to waste money going through a lengthy eviction process.

    Loan Modification

    Since the 2008 Financial Collapse, the Obama Administration has made serious efforts to provide loan modification programs to homeowners who are struggling with to pay off their mortgages. Talk with a local housing specialist at a nonprofit organization or a community development corporation to see if you can qualify for any federal-based loan modification program.


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