If you’ve missed your monthly mortgage payment for the third consecutive time, then your property is in danger of foreclosure.
Consumers with home loans are strongly advised to be alert about their payments but sometimes despite your best efforts, a financial crisis may prevent you from keeping up with your debts.
When confronted with this situation, what can you do? What important steps should you take to avoid foreclosure?
Keep in touch with your lender!
If you know that you can’t submit your monthly payment on your deadline, the best thing to do is to inform your lender in advance. Why won’t you be able to pay on time for this month? When do you intend to submit your payment? The fact is, you can ask your lender to extend your due date and request them not to report it as late payment.
What if you’ve already missed your due date without notifying your lender? If this is the case, it’s most likely that your lender would try to contact you about your past due payments. Never try to hide from your mortgage lenders whenever they attempt to call you. Don’t take their reminders or warnings for granted. If you do, you leave them with no choice but to file for foreclosure.
If a lender has already filed for foreclosure, it would be more difficult to speak with them and negotiate. Nevertheless, if your lender has sent you a notice of foreclosure, the next best step is still to speak with them and try to come up with a negotiation.
The good news is, many lending companies would rather help their clients by adjusting their repayment terms than to push through with foreclosure. Foreclosure is a lot more complicated and time-consuming than making modifications with the loan. In fact, mortgage lenders do have provisions for clients who can’t keep up with their repayments because of financial issues.
Stick with the plan!
If you’ve reached a negotiation with your mortgage lender, take your obligations seriously. This isn’t the time to be spending or incurring new debts. You can’t afford to be late again with your payments. For instance, if your lender has agreed for a reinstatement of your loan, make sure that you can submit your payment on the date you’ve promised to. Overlooking your new repayment terms could force your lender to take legal action against you.
As we’ve discussed, just because your lender has already filed for a foreclosure doesn’t mean you’re in a hopeless situation. If you take the appropriate steps right away, you can still save your home from foreclosure.
Meet with your lender. Show them that you’re willing to take responsibility of your debts. If your record shows that you’ve been a good payer in the past, there is a great chance that your lender would give in to your requests. Still, you’ll be in much safer situation if you take quick action and not wait for your lender to file for foreclosure.