Alarms Will Sound When You Miss a Payment

Paying monthly mortgage payments every month requires stable income. If you fall short of the monthly payment, there are things that you can do and some other things not to do.

A Little Caution Up Stream Goes a Long Way

The best way to deal with an emergency situation with your home payments is to prevent it from happening i.e. before there is a problem. If you can proactively start your home loan to be affordable with some enough left over and a contingency plan, then you are less likely to struggle during the repayment period.

A better initial plan for your mortgage might be to buy less home than you can afford. Say, your bank will lend up to $180,000, and you can make a deposit of $45,000, for a purchase price of $225,000. Instead of financing all the way, buy a home that is more affordable. Purchase a $200,000 home, make a $40,000 deposit, keep $5,000 in savings and live with a smaller monthly payment.

Just because a lender will pre-approve you for a higher amount doesn’t mean you have to take the full amount. At least part of the extra savings on your monthly payment should also go into savings as well.

What to Do When the Mortgage Payment Is Due

In the real world, consumers often need to use all of the credit they have to get on the home ownership ladder; they find it is difficult to save for a rainy day. So, what do you do when your mortgage payment is due and the savings is gone? First, don’t attempt to ignore the situation; delaying will only make it worse when you are forced to face up to it.

As soon as you realize, talk to your lender and confess that you will be late with your payment. You are not entirely alone, the government pressures lenders to be fair and there are regulations and rules to support that goal. Because of this, you may be in a position to refinance or modify your loan.

Respond to Challenges Proactively

As soon as you find you will miss the payment or make it late, again, contact your lender to discuss a forbearance, modification, or a refinance package. The bank may be helpful or not, but it is in their interest to keep the payments going smoothly; you won’t know their policy until you ask. If you miss a payment without communicating with them, your lender will begin the foreclosure process.

Do some research to learn what resources your state has to help you get through the tight spot. At the same time, start looking to replace the lost income or enhance the cash flow that you have. The sooner you act and the more information you can find, the more likely you will get a positive outcome that carries you through the tough times.

Call leading mortgage banker Semin Valani, AEM Loan (888) 760-0222 for any mortgage related queries. AEM Loan offers various loan program at very competitive rates.