Due to my extensive lending background, I have received numerous phone calls from homeowners who are delinquent on their mortgage payments asking for advice.  As a result of these calls I have learned the unfortunate truth that many homeowners wait too long to determine their options, the end result being a short-sale or foreclosure.

The first thing you should review is the underlying cause of the delinquent payments.  If it is due to a temporary change in circumstances, you should contact you mortgage lender and ask for a Forbearance Plan.  Forbearance is when the lender agrees to temporarily reduce or suspend your mortgage payment for a specific period of time ending with a reinstatement plan in which you agree to resume your regular monthly payments plus a portion of the past due amount until you are caught up.

If you have been late in the past, can currently make the monthly payment but don't have the additional money to bring the account current, your lender may agree to a Note Modification.  Your lender could change the terms of the original loan by adding the missed payments to the principal balance or extending the number of years you have to repay your loan.  Willingness and ability to modify the Note varies by lender and typically requires income and asset documentation as well as an explanation of the hardship that caused the situation.

If your mortgage payments are late because you are over-extended financially and you need help restructuring your budget to regain control of your finances, contact a HUD Approved Counseling Agency for Default Resolution Counseling.  In Contra Costa county of California, the HUD Approved Counseling Agency is:

CCCS of the East Bay
1070 Concord Avenue, Suite 105
Concord, CA  9450
800-308-2227

Regarless of your situation, it is important to take action steps immediately.  Any delay in taking action will reduce the number of options available to you and the timeframe of each option!