If you are you one of the many people today who are two or more payments behind on your mortgage or already facing foreclosure, perhaps you are wondering how to get help with your mortgage. In this article, I’ll take a look at some common recommendations and discuss how much they can actually help.
First of all, don’t wait around, ask for help as soon as you realize there’s a problem with paying your mortgage. Banks and other loan servicers are becoming more willing to help now than they have been at any point during the current mortgage crisis. Sure, some of them are still bureaucratic nightmares to deal with but others are realizing that the political backlash against them could cause them to have to deal with even more regulation. Even if you fail to make any headway in preventing foreclosure, taking action can help your self-esteem much more than waiting around for things to happen to you.
Should you ask a government agency for help with your mortgage? That’s a good question. There are HUD-approved mortgage loan counseling services available that can help, provided you can get an appointment to speak with them. Many offices are having trouble keeping pace with the demand and with governments having to cut back on programs and expenditures to get their own financial house in order this situation may not improve soon. It is, however, always worth a try since these services are free of charge and can help you avoid mortgage repayment scams.
Some government sponsored agencies have been offering foreclosure prevention workshops. These can be helpful since they can gather all the necessary people and resources in one location. Just make sure that any foreclosure prevention workshop is government sponsored and not a trick by a dishonest mortgage service company.
Should you seek help from a private foreclosure service? I generally recommend that you avoid these services due to the dishonest nature that many of them have exhibited. Also, even if you find an honest foreclosure service, you’re probably no financial condition to pay for their services or to deal with the consequences of bankruptcy, something many of them push.
Should you seek a loan modification? While it is possible to get a lender to agree to change the terms of your existing loan to terms that you can afford, this can be quite difficult to do. Many homeowners who’ve pursued this route have ended up in worse trouble since lenders tend to accelerate the foreclosure process after a failed loan modification. I’m not saying that you shouldn’t try this avenue if it’s open to you but only not to hinge your entire financial future on it being successful.
Perhaps the biggest thing you can do to get help with your mortgage and financial life in general is to not apply for any more credit and work hard at paying down your current debts. At the same time, work out a budget plan so that you know how much you’re spending and what you can realistically afford when you pay cash. Once you’ve taken this step and really know the truth of your financial situation, you can begin to formulate a plan to help yourself get out of the mortgage trouble you’re facing.