Behind on Mortgage Payments? What You Can Do

From losing your job to being confronted with unexpected medical bills, there are many factors in today’s world that can lead to falling behind on your mortgage payments. While it may be tempting to ignore the problem, taking proactive steps is the best way to protect your credit and avoid losing your home. The longer you wait to call, the fewer options you will have.

According to the Federal Trade Commission, many loan servicers are expanding the options available to borrowers in an effort to stem the foreclosure crisis. So try calling your lender again even if your request has been turned down before. And keep in mind that lenders are most likely swamped with such calls, so be prepared to be patient and keep trying .

The FTC says that you may qualify for a loan modification under the Making Home Affordable Modification Program (HAMP) if:

  • Your home is your primary residence
  • You owe less than $729,750 on your first mortgage
  • You got your mortgage before January 1, 2009
  • Your payment on your first mortgage (including principal, interest, taxes, insurance and homeowner’s association dues, if applicable) is more than 31 percent of your current gross income
  • You can’t afford your mortgage payment because of a financial hardship, like a job loss or medical bills

If you meet these qualifications, have the following documentation ready and call your lender:

  • Information about the monthly gross (before tax) income of your household, including recent pay stubs
  • Your most recent income tax return
  • Information about your savings and other assets
  • Your monthly mortgage statement
  • Information about any second mortgage or home equity line of credit on your home
  • Account balances and minimum monthly payments due on your credit cards
  • Account balances and monthly payments on your other debts, like student loans or car loans
  • A completed Hardship Affidavit describing the circumstances responsible for the decrease in your income or the increase in your expenses



If you have questions about buying or selling a home; or just have a question about the current market conditions, contact me

Source: Federal Trade Commission



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