LAKE HAVASU CITY PROPERTIES ON REAL ESTATE
What Happens When I Miss My Mortgage Payments?
Foreclosure
may occur. This is the legal means that your lender can use to
repossess (take over) your home. When this happens, you must move out
of your house. If your property is worth less than the total amount you
owe on your mortgage loan, a deficiency judgment could be pursued. If
that happens, you not only lose your home, you also would owe an
additional amount. Both foreclosures and deficiency judgments could
seriously affect your ability to qualify for credit in the future. So
you should avoid foreclosure if possible.
What should you do in this situation.
DO
NOT IGNORE THE LETTERS FROM YOUR LENDER. If you are having problems
making your payments, call or write to your lender's Loss Mitigation
Department without delay. Explain your situation. Be prepared to
provide them with financial information, such as your monthly income
and expenses. Without this information, they may not be able to help.
Stay in your home for now. You may not qualify for assistance if you abandon your property.
Contact a HUD-approved housing counseling agency. Call (800) 569-4287 or TDD (800) 877-8339 for the housing counseling agency nearest you. These agencies are valuable resources.
You may want to consider the following:
Special Forbearance.
Your lender may be able to arrange a repayment plan based on your
financial situation and may even provide for a temporary reduction or
suspension of your payments. You may qualify for this if you have
recently experienced a reduction in income or an increase in living
expenses. You must furnish information to your lender to show that you
would be able to meet the requirements of the new payment plan.
Mortgage Modification.
You may be able to refinance the debt and/or extend the term of your
mortgage loan. This may help you catch up by reducing the monthly
payments to a more affordable level. You may qualify if you have
recovered from a financial problem and can afford the new payment
amount.
Pre-foreclosure sale. This will allow you to
avoid foreclosure by selling your property for an amount less than the
amount necessary to pay off your mortgage loan.
Deed-in-lieu of foreclosure.
As a last resort, you may be able to voluntarily "give back" your
property to the lender. This won't save your house, but it is not as
damaging to your credit rating as a foreclosure.
For buying or selling real estate, call Dean Baker owner/Broker Lake Havasu City Properties, top selling salesperson for 14 years. Cell phone 928-486-3368 or (888) 854-7210.