How to Avoid Mortgage Default

I’m always happy to pass on great info...and this is great info! I’ve included a few snippets below lifted from the full article.

How you deal with impending loan trouble goes a long way to ending it in the best way possible. Let your lender know about your situation early. Banks prefer working with you as opposed to taking back the house, which almost always represents a loss for the lender.

If you’re facing mortgage trouble, take these steps:

• Get moving on a solution, or get help before it's too late. Many people burrow their head in the sand and wait until they've missed two or three payments to start working out a plan.
• Write a hardship letter to your lender, putting your situation in writing. Be specific about what caused the delinquency, with dates and a time frame. Make it detailed, but be concise.
• Be polite and work with the lender to find a solution you both agree on. This may be extending the repayment period, suspending the need for payments for a few months, borrowing from family members or tacking the missed payments onto the back end of the loan.
• Don't give up and walk away from your house before trying to find some kind of solution. And don't assume a short sale -- a process by which the bank agrees to sell your home for less than you owe -- is your only way out.

Do you need more detail on this subject? Head on over to the full article here for more ideas and perspective. Afterwards, why not drop me an email to share your thoughts [email protected]; or call me on (0403) 296-221.

Thanks,

Tammie