When Should You Talk With The Mortgage Company

When you get into a situation that you can’t make your monthly mortgage payment, get in touch with the mortgage company as soon as you can. You really should make that call before you start falling behind in your payments. Quite a few mortgage companies are accepting partial payments, and some may even let you skip some payment(s) and not even charge a late fee.

Of course you’ll still owe for the skipped payment(s), but they let you pay it off more gradually. Keep in mind that mortgage companies (just as landlords) will be far more likely to cooperate with you when you contact them before you fall behind in your monthly payments.

In case you are not able to come up with a plan, you should immediately get in touch with a housing counseling agency. The US Department of Housing & Urban Development (HUD) operates a housing counseling & referral telephone line that will direct you to low- or no-cost resources (1-800-569-4287).

You can also get in touch with your city, county, or state housing authority. You can find their phone numbers on the government pages in your telephone directory. You may also want to get in touch with a nonprofit consumer credit agency to help you restructure all your debt payments. Check out the National Foundation for Credit Counseling (1-800-388-2227). You can also go to the website of the NEFE (Smart About Money Economic Survival Tips) for advice on how to best protect your home from foreclosure.
Find Emergency Help – Raise Money

Even though you did your utmost to deal with the problem, there are situations that a mortgage company or a landlord will ask you to come up with all of the money owed by you immediately. When this happens, you must come up with money fast. For generating fast cash, you could sell all your belongings, ask friends to borrow you money, get financial help from a veteran organization or a religious group, ask for an advance on your wages, or check out local community groups and nonprofits.

If you have tools, appliances, stereo equipment, or any other items or stuff that you could easily do without, try to sell them quickly. If there are tools or other equipment that you use for work, don’t use these for that purpose. Just get rid of the things that are of no immediate use anymore. You may also want to see if your friends or relatives could borrow you some money, but please watch out.

Many family relationships and friendships have gone bad over money. When you can borrow money from a family member or a friend, be sure to repay that money as soon as possible, and put it on paper! If you do that, both parties know what they can expect. You may also be able to receive some sort of support from a religious or veterans organization.

If you are part of a religious group, you may ask if they provide some sort of emergency help, and veterans may check with their local veterans organization. You may also request an advance on your wages. When you’ve had a steady job for a longer period of time, your employer could be willing to furnish an advance on your monthly income.

Be very careful though when you consider this option, because if you get an advance from your employer, the following paycheck(s) are going to be far smaller than usual. Consider if you will be able to manage everything until your paycheck reaches the normal level again, and also consider your reputation at work. Asking for an advance could eventually work against you. If you want to learn about nonprofits and local community agencies, please contact your local Community Action Agency. They may have all the contacts where you can turn to for help.

Programs Set Up to Help You Keep Your House

The U.S. Government developed various programs that will help you avoid foreclosure and stay in your home. These programs include:

Making Home Affordable: refinance or modify your mortgage loans so your monthly payments will become more affordable. This program also includes the Home Affordable Foreclosure Alternatives Program which is developed to support homeowners who are thinking about a deed-in-lieu of foreclosure or short sale. You can read all about these programs on this website’s Home Mortgage Assistance Program pages or visit: www.makinghomeaffordable.gov.

Hope for Homeowners: this program is helping homeowners to refinance mortgages. This is for borrowers who are experiencing difficulty in making their monthly payments, but who are in the position to get a new loan under insurance of HUD’s Federal Housing Administration (FHA). For more information call 1-800-225-5342 or visit FHA.

The Housing & Urban Development’s Avoiding Foreclosure website can be found here: http://portal.hud.gov/portal/page/portal/HUD/topics/avoiding_foreclosure.