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What Should I Do If I'm Late On My Mortgage Payment?

InCharge Institute of America, Inc.

Help may be available if you have fallen behind in your mortgage payments and/or are facing foreclosure. First, ask yourself why you are behind in your payments:

  • Loss of employment?
  • Loss of income because of illness?
  • Overextended?
  • Mismanagement of funds?
  • Is the situation temporary or permanent?

The next step is to prepare a spending plan, or a budget, after you have come to a conclusion. Write down your combined monthly net income (take-home pay), and write down all monthly expenses.

If your monthly expenses exceed your net income and the figure includes hefty credit card payments, you may want to contact a debt management counselor at InCharge Debt Solutions prior to calling your lender. An InCharge counselor may be able to reduce your credit card payments enough to free up income that would move you from a negative to a positive cash flow. If after contacting a counselor you are still in a negative cash-flow situation, a Mortgage Specialist will be happy to provide valuable information to you.

However, if after contacting a counselor your situation is improved or your cash flow is positive, there may be a solution to your mortgage problem. The following steps are suggested:

  • Notify your lender in writing and follow up with a phone call. Notifying your mortgage lender of your predicament is very important because it lets them know you wish to fix the problem and keep your home.
  • Be prepared to submit a copy of your financial package, including a written budget to your lender.
  • Present proof of your situation (reason for delinquency, doctor bills, unemployment injured on the job, etc.).
  • Present a repayment plan that is affordable to you and one you think your lender will accept (A lender will normally extend a repayment plan up to six months, maximum).

If arrangements are made with a lender to bring your account current, always keep to the original agreed-upon arrangements.