It's never easy to admit, but if you can no longer make your mortgage payments, you need to be honest with yourself. Doing so increases the likelihood of saving your home and leaving yourself in a better financial position later.
The first thing you should do is assess your situation, paying close attention to how far behind you've fallen on your payments. From there, contact your mortgage lender to ask these questions:
- Can you explain the payments I've missed and where this leaves me? Even if you know how much you owe, you may have overlooked fees like interest and penalties. Speak to your lender to ensure that you know exactly what you are up against.
- Is there anything I can do to remain in my home? Your mortgage lender can discuss things such as loan modifications, forbearance and refinancing your loan. You may not qualify for all these, but it's critical to at least discuss them.
- What do I need to know about selling my home? You don't need your mortgage lender's permission to sell, but it's never a bad idea to ask if there's anything you need to know. For example, if you find that you owe more than your home is worth, you might want to discuss the possibility of a short sale with your lender.
Don't assume that falling behind on your mortgage payments is the end of the world. There are steps you can take to dig yourself out of trouble. By using the best foreclosure defense strategies, you'll soon find yourself feeling better about the future.