Questions And Answers About ForeclosuresPosted by Nick Niesen on November 8th, 2010 What happens when I miss my mortgage payments? Foreclosure may occur. This means your lender can legally 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, meaning you would not only lose your home, you also would owe HUD money. Both foreclosures and deficiency judgments could seriously affect your ability to qualify for credit in the future. So you should avoid foreclosure if at all possible. What should I do? Do not ignore letters from your lender. If you are having problems making your payments, call or write to your lender's loss mitigation department immediately. Explain your situation. Be prepared to provide financial information, such as you-r monthly income and expenses. Without this information, they may not be able to help. Look at your monthly mortgage coupons or billing statements for the lender's name and contact information. I don't remember what type of mortgage I have. How can I find this information? Look on the original mortgage documents or call your mortgage lender. Do I need to keep living in my house to qualify for assistance? Usually yes, but call your lender to discuss your specific circumstances and get advice on options that may be available. My employer has already announced layoffs in the coming month. What can I do now? You have started learning about available options here. Now, figure out if a layoff will make it hard for your family to make your mortgage payments. If so, consider other resources you have to pay your mortgage. Review your spending habits and see where you can reduce spending. If you have a lot of other debt, consider contacting a nonprofit, consumer credit counseling agency. Take advantage of any help your employer offers. If you still believe you will have trouble making your mortgage payments, contact your lender right away. What are the key points to remember? Don't lose your home and damage your credit history These precautions can help you avoid being "taken" by a scam artist: Don't sign any papers you don't fully understand. Will I be responsible for any out-of-pocket expenses if I am approved for a workout option? You may have to pay expenses such as recording fees for a loan modification. Because every situation is different, contact your lender for more information. But, if a lender has no contact with you and has to start foreclosure, you may have to pay very high legal fees. To avoid this, call your lender as soon as you realize you might have trouble. Mortgage lenders The mortgage lenders listed below have voluntarily joined the federal government to assist homeowners who are concerned about the future or have suffered due to recent changes in the economy. If your lender is listed here, you can help protect your home by contacting them immediately! Bank of America Like it? Share it!More by this author |