What Should I Do If I Fall Behind On My Mortgage Payment

What Should I Do If I Fall Behind On My Mortgage Payment

Image title



If you are worried about falling behind on your mortgage, here is what you need to know:



Is your current situation a short term situation or a long term hardship?


Why is this important? Most people who find themselves in a financial hardship do everything they can to pay their mortgage, even if that is not the best option for them. According to Bank of America once a borrower falls more than 2 months behind 90% of borrowers can not catch up the payments.


1. Trial Modifications


So what is the first thing you need to do? First you determine if your hardship is something that can be resolved in 30-90 days? Is this something you can recover from? IF the answer is yes then a trial modification would be ideal for your situation. This program is provided from your lender and allows you to make larger payments to catch up on your mortgage, without paying everything at once. This is a TEMPORARY arrangement. This would only be ideal for someone who missed 1 or 2 payments.


2. Loan Modifications


In theory a loan modification is supposed to do just that, modify the terms of the loan so the borrower can become current and afford the mortgage. I say in theory because most loan modifications get denied due to the fact that the lender does not actually “pre-qualify” you. THIS IS VERY IMPORTANT! 75% of my clients end up in a short sale situation because of MULTIPLE loan modification attempts with their lender that ended up getting denied. When you are behind on your mortgage, the lender will automatically send you the loan modification application.  THIS DOES NOT MEAN YOU QUALIFY!! This is very misleading and NOT explained to borrowers. If you cannot show that you make enough income to pay the mortgage, YOU WILL NOT QUALIFY. Here is why a loan modification can put you in a WORSE situation. Let’s say, you owe $100,000 on your mortgage and your house is worth $150,000, in this situation you would have equity, and if you sold it you would be able to pay your loan off and make some money. When you do a loan modification, what ends up happening is you lose your equity to the missed payments, interest and fees (they will not accept any mortgage payments while they are reviewing your application). Most loan modifications can take MONTHS, if not YEARS and can put you into foreclosure!


3. Short sale


How do you know if a short sale is a good fit? You are in foreclosure, you cannot afford your mortgage and your situation is not going to change to bring your mortgage current. You have tried to sell the home but the balance of what you owe is more than the house is worth. A short sale can stop your foreclosure and settle your debt with your lender. Most importantly you pay NOTHING! In most cases, if you are living in the house while you are doing a short sale, the lender will offer relocation assistance (money to help you move).



Questions? Call us at 972-832-2755


Nicole Espinosa Headshot
Author:
Phone: 972-832-2755
Dated: September 28th 2016
Views: 1,267
About Nicole: Nicole is a leading Short sale expert in the Dallas Fort Worth market. Before Nicole did short sale...

Property Search








RSS Feed

View our latest blog posts in your RSS reader. Click here to access. RSS

Search Blog

Recent Blogs

How Much Does Buying a Home Cost? - Last week I spoke about the
Don't get trapped in bidding for the Home you love....... - With the current market situation
3 Tips for Making Your Dream of Owning a Home a Reality [INFOGRAPHIC] - Some Highlights:Setting up an
10 Staging Secrets - 10 Staging Secrets from the

Our Bloggers

(Allen) Mehrdad Solhjoo - 4
Alan Oliver - 7
Alisa Simmons - 1
Amber Johnson Oputa - 11
Amy Jo Saenz - 3
Ana Cantu - 1
Andrea Trimble - 55
Angela Taylor - 1
Angela Cotten - 100
Ann-Marie Pope - 2
Annette Bruen - 47
Ashley Lambert - 1
Audra Young - 1
Belinda Duff - 5
Beth Herr - 1
Beverly Bryant - 24
Bob Cardillo - 4
Brittany Duey - 1
Bryce Smith - 5
Candace Mozingo - 1
Candie Hernandez - 10
Cara Balderas - 73
Chad Gabriel - 58
Christina Gonzalez - 5
Christine Shannon - 30
Christine McGinnis - 1
Christopher Evans - 1
Chuck May - 1
Clint White - 2
Comprar Casa DFW * - 4
Dakota Joyner - 9
David Darty - 1
Debbie Zurita - 17
Debbie Viverito - 132
Diane Velez - 18
Drew Spears - 6
Edwin Liddie - 1
Erica Taylor - 54
Eunice Pettaway - 1
Eva Duffy - 8
Felicia Johnson - 79
Gary Hutchings - 20
Go 2 Girls Realty - 173
Greg Cunningham - 2
Gregory Cornett - 2
Heather Feragotti - 8
Holli Paddio - 3
Hunter Howard - 1
Jamie Brannagan - 2
Jason Todd - 24
Jemi Khan - 26
Jenna Stanley - 9
Jennifer Flynn - 9
Jennifer Boyd - 2
Jessica Boozer - 18
Jill Elliott - 99
Jimmy Hanks - 1
John Priestash - 60
Judy Tapscott - 2
Julian Taylor - 17
Julian Dozier - 4
Julie Nicholson - 10
Julie Cash - 2
Justin Blackburn - 1
Karla Terrell - 2
Kaysone Orlando - 1
Keisha York - 30
Kelley Stubbs - 3
Kelly Rumney - 9
Kevin Taylor - 16
Kristen Henderson - 16
Kristine Edens - 3
Laneal Ernest - 9
Larry Frassinelli - 6
Leah Ecob - 15
Leigh Klotz - 5
Linda Scardis - 4
Lisa Carroll - 3
Lisa Cardillo - 53
Lucina Cervantes - 11
Marcos Garza - 1
Maria Lopez-Jones - 1
Mark Mulch - 19
Mark Fischer - 2
Marla Johnson - 1
Martina Worley - 2
Mary Taylor - 15
Melisa Crooks - 1
Melodie Sulgrove - 1
Michael Chatman - 2
Michele Thompson - 6
Mimi Rader - 1
Missie Craig - 12
Moira Brunken - 18
Monica Solkhon - 1
Naddia Morales - 10
Nick Walton - 79
Nicole Espinosa - 27
Nikki Okpuzor - 3
Olivia Borowski - 1
Rachel Walsh - 2
Ramon Bermudez - 4
Rene Sinclair - 27
Rhonda Borgne - 1
Richard Mikus - 1
Rodrigo Sotomayor - 16
Rosalia Tejeda - 1
Roxann Hailey - 4
Sandy Setliff - 225
Sarah Uber - 5
Sarah Dieter - 9
Sean Moniri - 21
Seana Taylor - 217
Shalee Garza - 10
Shelby Smith - 3
Shelia Randolph - 33
Spring Weeks - 9
Stacy Lynn Massar - 27
Steve Murray - 1
Susan Florsch - 12
Tami Bennett - 45
Tammy Gill - 1
Teneka Ray - 1
The Doyle Team * - 5
Tim Stoll - 52
Timothy Taylor - 1
Timothy Gilliam - 2
Trenton Johnson - 15
William Hurd - 3
William Graves - 5
Wilma Goodwin - 2

Saved Properties

This is a list of your favorite properties. We will email you if a property is reduced or leaves the market.

Click 'Save' to add a property to this list.

Register / Login

New & returning visitors please enter your information to login.

By clicking 'register' you are agreeing to our terms of use & giving us expressed written consent to contact you.

Questions? Comments? Complaints?

This message will go directly to the head of our team.

Location & Address

JP And Associates REALTORS
6136 Frisco Sq Blvd, #200
Frisco, TX
972-375-9448
0