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Step 1
Contact your mortgage company as soon as you know that you might miss a mortgage payment. Take the initiative to call them, and never ignore correspondence from your lender, whether by mail or by phone.
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Step 2
Explain your situation, and why you will miss a payment, for example, a medical emergency, lost job or other drop in income. Your lender will be more willing to work with you in this case.
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Step 3
Learn the options available to you in the event that you are unable to afford your mortgage payments temporarily or over the foreseeable future. These include coming to an agreement with your mortgage company, who may offer you forbearance, loan modification or loan re-instatement. Inquire from your lender if they can avail one of these options to you.
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Step 4
Prepare your financial information such as your monthly expenses and income. This not only demonstrates that you are serious about addressing the situation, but this is also information the lender will require to decide which options they may be able to offer you (forbearance, loan modification or loan re-instatement).
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Step 5
Research and familiarize yourself with your rights as a homeowner as defined by state and federal law. Find out, for example, if you qualify for government help, file for bankruptcy or short sell your home.
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Step 6
Change your spending habits to minimize your expenses. Sell any items you can live without, cancel your TV cable service, stop eating out and avoid using your credit cards. If you or anyone gets a part-time or second job, inform your lender of this additional income, no matter how little it may be. It is another illustration that you are doing all you can to resolve you financial situation.
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Step 7
Get in touch with a HUD-approved counselor, who will usually be able to provide you with information on the options available to you, as well as the resources that you may be able to tap into. You should also consider consulting with a real estate agent attorney.
