Falling behind on your mortgage payments can be a distressing and overwhelming experience, casting a shadow of worry and uncertainty over your life. If you find yourself grappling to meet your monthly mortgage obligations, it is crucial to reach out to your mortgage company without delay. Swift action can help you navigate this challenging situation and prevent it from escalating into a more severe financial crisis. Here are five compelling reasons to contact your mortgage company immediately, even if you’re just starting to fall behind:
1. To avoid foreclosure
Foreclosure is the legal process of taking your home away from you if you do not make your mortgage payments. If you are more than 90 days behind on your payments, your lender can start the foreclosure process. This can be a very stressful and humiliating experience, and it can also have a negative impact on your credit score.
- According to the Federal Reserve Bank of St. Louis, there were 522,051 foreclosures on residential properties in the United States in the third quarter of 2022.
- This was an increase of 10.5% from the second quarter of 2022.
2. To get a forbearance agreement
A forbearance agreement is an agreement with your mortgage company that allows you to temporarily reduce or suspend your mortgage payments. This can be a helpful option if you are experiencing financial hardship due to a job loss, illness, or other unexpected event.
- According to the Mortgage Bankers Association, the percentage of mortgages in forbearance was 1.2% in July 2023.
- This was down from a peak of 2.7% in January 2021.
3. To modify your loan terms
A loan modification is a change to the terms of your mortgage loan. This can include lowering your interest rate, extending your loan term, or reducing your monthly payments.
- According to the Mortgage Bankers Association, the percentage of mortgages in loan modification was 0.8% in July 2023.
- This was down from a peak of 2.3% in March 2021.
4. To get help from a housing counselor
A housing counselor is a trained professional who can provide you with free or low-cost advice and assistance on housing matters. They can help you understand your options and develop a plan to avoid foreclosure.
- To find a housing counselor near you, visit the website of the National Housing Counseling Association.
5. To get peace of mind
Contacting your mortgage company and taking steps to avoid foreclosure can give you peace of mind knowing that you are taking proactive steps to protect your home.
How to contact your mortgage company
The best way to contact your mortgage company is to find the phone number or email address for your customer service department. You can also visit your lender’s website or go to your local branch in person.
When you contact your mortgage company, be prepared to provide them with the following information:
- Your name and account number
- The reason you are contacting them
- Your financial situation
- Any documentation you have to support your financial situation
The sooner you contact your mortgage company, the sooner you can get the help you need to avoid foreclosure.
Additional tips:
- Be honest and upfront with your mortgage company about your situation.
- Do not ignore letters or calls from your mortgage company.
- Keep copies of all communication you have with your mortgage company.
- Seek professional help if you are feeling overwhelmed.
Falling behind on your mortgage payments can be a daunting and stressful experience, but it’s crucial to remember that you are not alone in facing this challenge. Numerous resources and assistance programs are available to help you navigate this difficult situation and potentially avoid the harsh consequences of foreclosure. By proactively reaching out to your mortgage company and seeking guidance, you can take the necessary steps to safeguard your homeownership and maintain financial stability.
Taking action early is paramount when encountering difficulties in keeping up with your mortgage payments. Delaying communication with your lender can exacerbate the situation and limit your options for resolving the issue. Open and honest communication with your mortgage servicer is essential to explore various solutions and develop a plan to address your financial concerns.
This story was created using AI technology.
