Struggling to make mortgage payments is stressful. Feelings of anxiety can be compounded if those payments have been missed. You start to wonder “What can I do? Are there any options?” Here are 4 next steps to take if you’re stumbling with house payments.
1. Be aware.
Straining to make or missing mortgage payments is difficult and the problem will not be fixed without taking action. You have to acknowledge there is something to fix and decide to start problem solving. Have unopened letters piled up from your lender? Begin with something small and open your mail. If you’re in the dark about the status of your mortgage read through the mail and look for notifications.
2. Don’t run; take ownership.
Once you’ve recognized there is a problem, commit to taking action to achieve resolution. Addressing the struggle or delinquency head-on is important as time may not be on your side. In the state of Minnesota, after 3 missed payments a Pre-foreclosure Notice may be sent which indicates the lender is aware you are struggling. The Pre-foreclosure Notice provides contact information for the homeowner to connect with a foreclosure prevention counseling agency who can provide strategies that may include loan modification options for the mortgage.
3. Communicate with your lender.
Contacting your lender may seem daunting, but it’s the best way to figure out your options. If you think your mortgage payment is affordable & you can catch up the past due amount, request to speak with a representative from the Loss Mitigation Department. If the lender supplies you with a loan modification packet, complete and submit it and then plan to check in with the loan servicer once a week or every other week. It’s up to you to ask about the review status, additional documentation required, or if a Sheriff’s Sale has been scheduled. If you think your home is unaffordable, contact a HUD-certified foreclosure counselor to discuss options and your rights.
4. Seek guidance.
It’s ok to ask for help. Seek input from an unbiased, trusted specialist – it’s important to know you should not pay a third party to modify your mortgage. Contact a HUD-certified non-profit housing counselor to confidentially discuss your individual options.
LSS Financial Counseling, or any HUD-certified foreclosure counselor, can help you assess your financial situation, assist you with completing necessary documentation and paperwork, work with your lender, and discuss options to save your home.
Waiting limits your options. Call LSS Financial Counseling at 888-577-2227 today for options regarding your mortgage.
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