WHAT HAPPENS WHEN YOU DEFAULT?

This is the first in a series to help homeowners facing default.  Many homeowners don’t realize that there are options available to them other than losing their home to their lender through foreclosure. 

WHAT HAPPENS WHEN YOU DEFAULT?

When you miss a mortgage payment you are considered to be in default.  Some times your lender will contact you to see about the missing payment, many times they don’t.  As a general rule, lenders will not contact you until after at least 30 days have passed since many defaults get rectified within those first 30 days.  If your lender calls, talk to them, if they don’t call, you call them.  Either way, get them on the phone and  talk to them!   Explain to them why you have missed your mortgage payment, if you are going to be able to continue paying your mortgage or not, and if you would like to stay in your home.  Don’t be afraid or embarrassed to talk to them, they do have solutions to help you.

If you miss one payment the lender’s first solution is going to be to take that missed payment and spread it out over a few months (most likely three) to get you back on track.  If that would work for you and you can handle those extra bucks for the next three months then go for it.   But if you know that this situation is toxic and that you are not going to be able to continue to make your original payments once the shortfall has been made up, then it’s time to start thinking about your options.

Find out from your lender what options you have available and then talk to a professional to help you evaluate those options.

Next in the Series: They Are Not the Enemy!