Financial difficulties can happen unexpectedly. A job loss, reduction in income, major expense, or other change can make a mortgage payment difficult to manage.
If you believe you may have trouble making your mortgage payment, one of the most important things you can do is contact your mortgage servicer as soon as possible. Waiting and ignoring notices generally does not make the situation easier.
Talk to Your Mortgage Servicer
Your mortgage servicer is the company you send your monthly mortgage payment to. Depending on your circumstances and the type of mortgage you have, there may be options available to help you address a temporary or longer-term hardship.
Those options vary considerably based on the loan, servicer, investor guidelines, and your individual circumstances. Your servicer can explain what programs, if any, may be available and what documentation is required.
Don’t Wait Until You’re Several Payments Behind
If you already know that your finances are becoming difficult, consider contacting your servicer before missing multiple payments. Early communication may give you more time to understand your options and make a plan.
Also, don’t ignore letters, emails, or phone calls concerning your mortgage. Keep copies of correspondence and records of conversations you have with your servicer.
Be Careful With Companies Promising a Quick Fix
Financial hardship can make homeowners vulnerable to companies promising to stop foreclosure, dramatically reduce a mortgage balance, or guarantee a loan modification.
Be cautious about paying someone who promises a guaranteed result. Your mortgage servicer should be one of your first calls when you’re having difficulty making your payment.
The Most Important Thing Is to Act Early
Falling behind on a mortgage doesn’t mean every homeowner will have the same outcome. Every situation is different.
If you’re struggling, don’t ignore the problem and hope it goes away. Contact your mortgage servicer, understand your options, and take action as early as possible.