The American dream has always involved owning your own home. Home ownership is still a major part of a secure financial future. But when circumstances change and you can't afford to make your mortgage payment, you must find other options to keep that dream alive.
All of us can encounter difficult times when we have trouble making ends meet. We do all that we can and still something threatens our financial future. Which way can you turn in times like this? If you find that you will have trouble making your mortgage payment, don't wait until the last minute to do something about it. Ignoring the telephone calls from your lender once the due date has come and gone will not help the situation. They will continue to try to reach you and leave messages on your answering machine.
For mortgages, there is not an assistance program per se in existence. Companies may try to sell you that line but all they will be doing is scamming you and taking what little money you have left. It is up to you to negotiate with your mortgage lender. A lender will be more willing to negotiate with you before the problem begins rather than after it is too far gone. A lender can foreclose on you if you are more than two mortgage payments behind. But take heart. Hopefully your financial problems are only temporary. Even so, a solution is needed to keep your mortgage under control in the mean time. So, let the lender know what is going on as soon as you know.
Discuss the problem with your lender. They can suggest to you some options for dealing with the problem. For a few months or until you can make a regular payment again, the lender may let you pay the interest only and defer the principal on the loan. This gives you some breathing room when it comes to the worry over keeping your home.
In light of such a payment plan, readjust your budget. You will want to save as much money as you can towards the first regular payment once the reduced payment plan ends. This could require you to seek payment plans with other companies such as utilities and credit card companies.
Know your assets. Can you sell something such as that second car or get cash from a life insurance policy to tide you over? This could be the perfect time to hold a yard sale or learn to sell on eBay. Any avenue to make extra money is good right now.
Work with your mortgage lender to come up with a reasonable solution. They can also put you in touch with resources to help you come up with more permanent solutions to the problem at hand.
