Getting off track happens for a variety of reasons. Skipping a mortgage payment with hopes of catching up later is tempting to some.
Elizabeth Weiss via Zillow Porchlight writes, “…a passive approach to a financial issue – particularly one involving something as impactful as your mortgage – is not advisable”.
Here’s how to not derail your financial well-being if you feel your payment slipping away.
Be Honest – Weiss quotes Florida Attorney Cydney Bulger, who says, “The first and most important thing I always tell clients concerning delinquent mortgage payments is to contact their lender/servicer in writing, to advise them of the hardship and inability to make payments”. Being up-front about your financial situation can only help to benefit you in the future.
Be Quick – If you can see that you’re not going to be able to make your payment, contact your servicer as soon as possible. The more you wait, the more you may limit your options. Let your lender/servicer know as soon as you can that you are experiencing a personal financial crisis.
Be Educated – Familiarize yourself with the rules of restricting dual tracking and seek loan assistance ASAP. Dual tracking is when a mortgage service forecloses on a property while simultaneously considering a loan modification. According to Wier, the rule exists to protect homeowners going into foreclosure, and violations of the rule could entitle the borrower to damages or could give them leverage in a foreclosure lawsuit.
Be Open to Options – State programs exist to help homeowners who are struggling – the Hardest Hit Fund works to help people stay in their homes. Ask your servicer about your option and do your own research finding avenues to help you get caught up.
For more ways to be proactive in dealing with financial crisis as it pertains to your mortgage payment, check out Zillow’s blog.