9 Things To Do If You Cannot Make Your Mortgage Payment

If you are unable to make your mortgage payment:

1. Don't ignore that you cannot make your mortgage payment. The further you fall behind on your mortgage payment, the harder you it will be to reinstate your mortgage and bring you closer to losing your house.

2. Contact your mortgage lender as soon as you figure out that you have a problem making your mortgage payment. Mortgage lenders do not want to foreclose on your house. All mortgage lenders have options available to help out borrowers during difficult times.

3. Open all mail from your mortgage lender and respond promptly. The first notices you receive from your mortgage lender will offer good information about your options for foreclosure prevention to help you during financial problems. Later mail from your mortgage lender may include the important notice of pending legal action against you. Failure to open your mail will not be a vaild excuse for your defence in foreclosure court.

4. Understand your mortgage rights under the law. Find your mortgage documents and read them so you understand what your mortgage lender(s) may do if you are not able to make your mortgage payments. Learn about your local foreclosure laws and timeframes since every state has different foreclosure laws by contacting the State Government Housing Office in your state.

5. Understand foreclosure prevention options that are available to you. You can find valuable foreclosure prevention information, which is also known as loss mitigation, options at www.fha.gov/foreclosure/index.cfm.

6. Contact a HUD-approved housing counselor in your area provided by the U.S. Department of Housing and Urban Development. HUD funds free and/or very low cost housing counseling nationwide. HUD Housing counselors can help you understand the foreclosure law and your options, organize your finances and represent you in negotiations with your mortgage lender if you need this type of assistance. To find a HUD-approved housing counselor in your area or call (800) 569-4287 or TTY (800) 877-8339.

7. Prioritize your personal spending. Make sure healthcare is your first priority, but keeping your house should be your second. Go over your finances and find where you can cut your spending to make your mortgage payment. Optional expenses like cable TV, club memberships, and entertainment can be eliminated. Until you have paid your mortgage, delay payments on credit cards and other unsecured debt.

8. Use your existing assets when looking for help to pay the mortgage. Do you have any assets like a second car, some jewelry, or a whole life insurance policy that you can sell for cash to help reinstate your home loan? Can you get an extra job to bring in additional income? These steps demonstrate to your mortgage lender that you are willing to make sacrifices to keep your home by increasing your chances to pay your mortgage.

9. Avoid all companies that claim that can prevent foreclosure. Don't pay fees for foreclosure prevention help. You should use that money to pay your mortgage payment instead. Those companies may be legitimate businesses, but will charge you a fee that is often two or three times your mortgage payment for information and services your mortgage lender or a HUD approved housing counselor will provide for free if you work with them.