Late Mortgage Payments? Act Sooner than Later

When the economic environment puts a strain on your ability to pay your mortgage it is important to act sooner than later. Even if you have not missed any payments it is not too soon to take action. There are many resources to help struggling homeowners avoid losing their home to foreclosure.

First, collect all your bills from everyone you owe money to. Total all your expenses per month and compare it to your total income each month. If you can foresee any difficulty now or in the near future making your payments it is time to take immediate action. Gathering this information will also help you be more prepared when speaking with the lender.

Contact your lender(s) and explain your situation to find out if they can work with you. The $275 billion Homeowners Affordability and Stability Plan that just passed should make it easier for banks to refinance or modify your mortgage. Low-cost refinancing will help with mortgages that are more than 80 percent of the current home value. Loan modification under the Homeowners Stability Initiative will assist owners with a total debt that is 55% of their total income. More information about the Stability Plan program is found at this website:

www.financialstability.gov/

If you do not feel comfortable speaking with your lender you can contact a reputable mortgage counselor. Visit www.hud.gov or call 1-800-569-4287 for a list of HUD approved housing counselors. These agencies may also have credit counseling available. These services are usually free.

Selling your house may be the only option that works for your situation. If you have enough equity you may be able to sell your home and pay off the mortgage. If not then you may have to ask the bank to take less than what is owed in a short sale. At this stage please contact Rock Realty at 1-877-774-ROCK(7625).

Don't wait to be behind many payments to take action. If you can anticipate difficulty with paying your mortgage now or in the near future there are steps you can take to help avoid foreclosure. Calculate your financial situation to find your ability to pay your mortgage. Contact the bank for any programs they may have for making your payments more affordable. You can speak with a housing counselor for assistance in helping straighten out your finances. If all your other options no longer work contact Rock Realty to help you plan a short sale. The longer you wait the fewer options you may have.