How to get help when you can't pay your mortgage payment

There are millions of Americans currently struggling to keep their homes. Companies are down sizing and the cost of goods is rising causing many families to find it harder to pay their monthly mortgage payment. Know that you are not alone in this struggle and that there are steps that you can take to save your home from foreclosure.

Difficulty:

Moderately Challenging

Instructions

1. The first thing to do when you can't pay your mortgage is contact your lender as soon as you have a problem. Many people try to avoid the lender, this is a mistake considering the fact that your lender may have ways to help you in your situation.

   This should be your first step when you miss a mortgage payment. Keeping the lines of communication open between you and your lender is important and could benefit you if programs become available.

2. If you do not contact your lender than your lender will make every effort to contact you either by phone or by mail. Don't ignore mail from your lender and if they call explain your situation.

   If your lender doesn't hear from you, they will have to start legal action leading to foreclosure.

3. Try to make your mortgage payment. If you cannot make a payment contact your lender and find out what possibilities are available to help you catch up.

   Some possibilities are:
   1. Reinstatement: Your lender is always willing to discuss accepting the total amount owed in a lump sum by a specific date. Forbearance may accompany this option.
   2. Forbearance: Your lender may allow you to reduce or suspend payments for a short period of time and then agree to another option to bring your loan current. A forbearance option is often combined with a reinstatement when you know you will have enough money to bring the account current at a specific time. The money might come from a hiring bonus, investment, insurance settlement, or tax refund.
   3. Repayment plan: You may be able to get an agreement to resume making your regular monthly payments, plus a portion of the past due payments each month until you are caught up.

4. If you feel that you cannot pay your mortgage payments maybe because of an Adjustable Rate Mortgage (ARM) or a recent job loss ask your lender for information on a loan modification. There are many government programs available right now to help distressed homeowners keep their homes. Ask your lender if you qualify for any of these programs.

5. If you feel that your lender is not helping you or if they say there are no programs available to you DON'T GIVE UP! I have included links in the resource section below that will direct you in finding the help you need to save your home.

   Remember that you must attempt to pay a mortgage payment while your are searching for help. Paying a payment will bide you more time as you search.

Tips & Warnings

• HUD and private mortgage insurance companies, plus investors like Freddie Mac and Fannie Mae, require lenders to work aggressively to help borrowers facing money problems.

Resources

• protecting America's Homeowners
• Hope for Homeowners
• Hope Now
• How to take steps to stop foreclosure
• How to stop foreclosure in the preforeclosure stage
• How to find help with bills
• How to find assistance for food and bills