Behind in Payments Mortgage Help

From LoveToKnow Mortgage

If you are behind in payments, mortgage help is available. Programs within the Department of Housing and Urban Development (HUD) provide both mortgage payment options and information.

Don't Hide

One of the biggest mistakes homeowners make is to try to hide their poor financial situation from their lender. Some homeowners incorrectly believe that a late payment, a partial payment or a missed payment will go unnoticed by the lender. The reality is that a lender is immediately aware of any payment irregularity and the loan will be coded in some way to help the lender keep an eye on future payments by the homeowner. Homeowners should resist the urge to hide and instead reach out and get help and information about what steps can be taken to avoid foreclosure.

Talk to a HUD-certified Counselor

You should look for help as soon as you start having trouble paying your mortgage. HUD has certified non-profit housing counselors throughout the United States who are specifically trained to help homeowners understand their options, understand the foreclosure timeline and learn what steps they should immediately take to hold onto their homes. These counseling agencies can be located on the HUD website. Their counselors can help you work through your options. For example, a counselor can help you:

  • Evaluate your financial situation
  • Determine whether you will be able to fight foreclosure
  • Develop a budget plan to meet all of your monthly expenses, including your mortgage
  • Determine how much cash you have to apply toward your mortgage payment
  • Find sources of financial and legal assistance
  • Understand the potential options - such as reduced or delayed payments - which might be available through your lender
  • Negotiate with your lender to develop a workout plan based on your financial situation

Behind in Payments: Mortgage Help from the Lender

Your lender may be willing to discuss mortgage workout options if your loan is only one or two payments behind. The further behind you are in mortgage payments, the less likely your lender may be to make changes in your loan. The lender may agree to:

  • Suspend your monthly payment for a short period of time if you have money coming which will be used to pay the missed payments, such as an insurance settlement or a tax refund.
  • Set up a payment plan for the missed payment by adding portions of the missed payments to future monthly payments.
  • Modify the mortgage to reduce the payment by lowering the interest rate or lengthening the term of the mortgage.

Assistance for Military Personnel

Homeowners who are on active military duty or a reservist called to active duty can receive special help based on the Servicemembers Civil Relief Act. The Act provides help to active duty personnel in two important ways:

  • It limits the amount of interest that can be charged on a mortgage.
  • It protects a homeowner against foreclosure.

The lower interest rate and foreclosure protection are not provided automatically. The homeowner must make a written request to the lender providing proof of their active duty status.

Post-Disaster Help

You might quality for mortgage payment relief or a 90-day delay in foreclosure if your home is located in an area that has been declared a disaster area. Lenders may waive late fees on missed mortgage payments. Contact your lender to see if you quality for this post-disaster help.

For More Information on Mortgage Payment Help

Once you are behind in payments, mortgage help and resources are key elements to help you determine your options and decide what you need to do. Some helpful resources include:

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