When you borrow money to pay for a home, you're expected to repay it as agreed upon in the terms and conditions. If you miss a mortgage payment, it's imperative to catch up as soon as possible. Also, reach out to your lender to discuss your situation with them and to determine if there's anything they can do to help.
If you continue to miss payments, foreclosure may be on the horizon. As scary as it may be, understanding your foreclosure rights can help put you in a better position to get through your financial crisis.
Your mortgage lender must do the following:
- Send a notice: Your lender can't foreclose on your home without first providing you with written notice of their intent. This will give you a clear idea of your situation and what you're up against.
- Provide proof of the money you owe: It's not good enough for your lender to tell you that you're behind on your payments. They may also itemize the amount of money you owe.
After you review your situation, you may have reason to believe that your lender has made a mistake. For example, maybe you mailed a payment one month but the lender never received it. With the right proof, you can fight back with the idea of forcing the lender to make the necessary adjustment to your account.
If you've tried everything to catch up on your mortgage payments but continue to come up short, look into some of your other options. For example, you can work with your lender to adjust the terms of your loan. If that doesn't work, a short sale or bankruptcy filing may be the best solution.