I know there are many homeowners in the US, and here in Jacksonville, FL that were lured by low teaser rates into adjustable loan products in the past few years.
I've had good friends desperately trying to avoid foreclosure (one is on his 9th workout contact at Countrywide), and now I'm getting calls from homeowners who fear losing their homes. Some of these homeowners have not yet missed a payment, but they are putting huge balances on credit cards, to they are struggling with the debt.
I tell them; "Do not stop making your mortgage payments!". This is the first step to take. Once you miss one payment, it's easier to miss the second payment, because you've already missed one, so what's the big deal about two payments? The third payment is usually the silver bullet that starts the foreclosure process.
What can you do to continue making your payments? Are there other things (cable, for instance) that can be cut back on or cancelled all together and free up some cash for the mortage or groceries? Is there an extra job that can be picked up (or, work from home?) that will help bring in extra cash. Is there a family member who could help out with a loan?
A hardship letter to the lender explaining a change in job or medical condition can also help you get to the workout department - you need to remember the banks really don't WANT real estate as one of their assets, but that does NOT mean they will not pursue the process as though they DO want your house.
The most important thing is not to bury your head in the sand, and pretend the letters and notices will stop coming. You need to face up to the situation, get input from your church, your family, the local legal aid, or attorney, and determine your best course of action.
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