Make an appointment with your bank to discuss your financial situation.
Buying a house can be exciting, but falling behind on a mortgage can be scary and intimidating. Increasing bills, medical problems, a shift in careers or rising living costs can cause many to come up short on their monthly mortgage payments. Fortunately there are steps you can take if you don't have money to pay your mortgage, but the most important thing to remember is to communicate promptly to your bank about your circumstances.
Call
Call the bank right away if you're unable to pay your mortgage. Banks "adopt a very different attitude if they know the facts and (know) that the owner is not trying to skip out," Colleen Hernandez, executive director for the Homeownership Preservation Foundation, tells USA Today. Outline reasons why you are unable to make your mortgage payments. Most banks have a mortgage division with special phone numbers for customer assistance. Hernandez tells USA Today that "if the owner dodges [banks] and won't take their calls, [the bank] adopts a hard-core attitude."
Visit In Person
If you were not able to convey your dire financial situation during your phone call, make an appointment with your bank for a personal meeting. Bring applicable documents with you, such as medical notes, receipts, pay stubs or a formal layoff letter to support your case. Banks will often work with those who are having mortgage problems since foreclosing on a home and reselling it "costs a lender almost $59,000 on average," according to USA Today.
Gather Information
Pay close attention to the information your bank gives you during your phone call or visit. Ask your bank for copies of documents they may be quoting from. Bring a pad of paper and a pen and note pertinent details and options. Documenting your options can help if legal problems arise.
Work Out a Deal
Because foreclosures can be expensive for banks, your bank may be eager to help you to keep your home out of foreclosure. They may offer a flexible repayment plan, refinancing, forbearance or a loan modification that changes your interest rate.
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