Although there are few people who plan to default on their mortgage loan, life happens, and, all too often, we are faced with unexpected expenses, job loss, divorce, or other financial disasters. Although financial experts suggest that we all have a minimum of three months expense cushion in our savings accounts, the reality is that most people just don’t have that much money set aside. But, financial challenges need not cost you your home if you take charge of your financial situation as soon as you realize it has become out of control.
Negotiation Tips to Bring up With Your Lender
The first thing to remember is that your home mortgage loan company really doesn’t want your house. They would much prefer to have their money instead. With this in mind, as long as your financial setback appears to be temporary, your mortgage company will usually be surprisingly happy to work with you to help you retain your house.
Mortgage Lenders Can Offer Flexible Repayment Options
Lenders are actually equipped to handle the temporary financial setbacks that their customers sometimes experience and have devised repayment plans designed to help you regain control of any late mortgage payments.
Negotiate Rolling Payment Plans with Banks
Most of the plans that mortgage lenders use to help you get back on track involve either rolling the late payments to the end of the loan, breaking the payments up over the next few months and paying a certain amount toward the past due balance in addition to your regular monthly payment, or completely refinancing the loan. If your financial troubles are more than temporary, you may want to discuss placing your house on the market or opting for a short sale which can be discussed with your mortgage company.
Whichever route you choose, the main thing to bear in mind is to contact your mortgage company as soon as you realize that making your payments has become a problem. By keeping in touch with your lender, you are creating a line of trust that can only help you in the long run.