When the unexpected occurs and causes you to fall behind on your bills you will no doubt have trouble making your mortgage payments as well.
Since the mortgage is for your most basic need for shelter, it is particularly difficult to handle knowing that if you can’t manage to pay, you and your family could end up out of your home.
When the unexpected occurs and causes you to fall behind on your bills you will no doubt have trouble making your mortgage payments as well. Since the mortgage is for your most basic need for shelter, it is particularly difficult to handle knowing that if you can’t manage to pay, you and your family could end up out of your home.
The Federal Government has implemented some programs that are designed to help with the millions of Americans that are facing foreclosure and pre-foreclosure every day across the country.
The foreclosure avoidance counseling available will allow you to meet with a counselor to see what can be done to reorganize your finances and get you on a better track to meeting your obligations and managing your income.
The counselors will meet with you and go over your mortgage contract. The income you are receiving at this point will also be taken into consideration. They can see what you have coming in and what you must pay out and can offer suggestions and options for you. They will also look at any delinquencies you have with your mortgage payments.
A money management plan can be formulated. With many people, there is just an adjustment in spending habits that must occur and all financial obligations can be met with the current income in place. With others, there could be an alternative payment plan requested from the lender to aid the homeowner in repaying the mortgage at a payment schedule that he can afford. If it prevents foreclosure, the lenders will usually agree to an alternative plan.
The Making Home Affordable federal government plan helps to reorganize the loan and modify the payments. This would make the home more affordable on a monthly basis and both the lender and the borrower will win. Lenders are often amenable to alternative arrangements these days because there are so many homes that are foreclosed on.
It is quite expensive for the lenders to foreclose on you so anything that can be done to keep you in the home with a reasonable alternative arrangement is often acceptable and preferable over the full foreclosure proceedings. Contrary to popular belief, the banks are not greedily waiting to take your house away from you.
Counselors can help you to negotiate with your lender if you think you may need to do something proactively about your mortgage before you see real trouble. A real estate investor can also help as they are in the business of buying and selling houses on a regular basis.