If having trouble keeping up with your mortgage payment is a concern right now because of the uncertainty at least for the short term, here are some tips.
1. Don't ignore letters from your lender. The first notices you will receive will offer good information about foreclosure prevention options that can help you weather financial problems.
2. Don't ignore the problem--the further behind you become, the harder it is to reinstate your loan and the more likely that you will lose your house.
3. Contact your lender as soon as you realize you have a problem. Lenders do not want your house. They have options to help borrowers through difficult financial times.
4. Know your mortgage rights. Find your loan documents and read them so that you know what your lender may do if you can't make your payments.
5. Prioritize your spending. After healthcare, keeping your house should be your first priority. Review your finances and see where you can cut spending in order to make your mortgage payment. Look for optional expenses--cable TV, memberships, entertainment--that you can eliminate. Delay payment on credit cards and other unsecured debt until you have paid your mortgage.
6. Avoid foreclosure prevention companies. You don't need to pay fees for foreclosure prevention help--use that money to pay the mortgage instead.
7. Don't lose your house to foreclosure recovery scams! If any company claims they can stop your foreclosure immediately and if you sign a document appointing them to act on your behalf, you may well be signing over the title to your property and becoming a renter in your own home. Never sign a legal document without reading and understanding all the terms and getting professional advice.
Because of the state of the economy at the moment, you may be eligible for the Home Affordable Unemployment Program (UP), which is assistance by the Federal Housing Administration (FH), which is part of the U.S. Department of Housing and Urban Development (HUD). The program provides a temporary reduction or suspension of mortgage payments for at least twelve months while you seek re-employment and until this current situation improves.
I decided to write this blog as a checklist so that it is something you can print if you wish.
Meanwhile, please remember that this too will pass.
"In every situation, life is asking us a question, and our actions are the answer". Ryan Holiday.