Negotiation: Contact Your Lender

Prior to falling behind on your mortgage payments or immediately afterwards, contact your mortgage lender to discuss your options and work out a deal. The bank may enter into a forbearance agreement, allowing you to not make payments for a short period of time, which may help you to get back on your feet.

“When a lender offers forbearance, they are taking control of the situation so that they can maneuver whichever way best serves the lender,” says real estate attorney Taylor McCaffrey.

You may also request a modification of your mortgage payments to make them more affordable in the short term. Your lender should have all the information regarding your situation in order to offer a viable solution. Let them know if you have lost your job or have fallen ill, and how you will find a solution to these issues. Banks can be sympathetic if you’re honest from the start.

“These are experts who have helped out hundreds of homeowners in similar circumstances. They have the expertise and knowledge to give you an honest assessment of your situation, outline your options and help ensure that if you do contact your mortgage servicer to seek a loan modification, your application doesn’t get lost,” said Sean Coffey, a former housing counselor for California Reinvestment Coalition, a consumer advocacy group.

Negotiation: Contact Your Lender

Prior to falling behind on your mortgage payments or immediately afterwards, contact your mortgage lender to discuss your options and work out a deal. The bank may enter into a forbearance agreement, allowing you to not make payments for a short period of time, which may help you to get back on your feet.

“When a lender offers forbearance, they are taking control of the situation so that they can maneuver whichever way best serves the lender,” says real estate attorney Taylor McCaffrey.

You may also request a modification of your mortgage payments to make them more affordable in the short term. Your lender should have all the information regarding your situation in order to offer a viable solution. Let them know if you have lost your job or have fallen ill, and how you will find a solution to these issues. Banks can be sympathetic if you’re honest from the start.

“These are experts who have helped out hundreds of homeowners in similar circumstances. They have the expertise and knowledge to give you an honest assessment of your situation, outline your options and help ensure that if you do contact your mortgage servicer to seek a loan modification, your application doesn’t get lost,” said Sean Coffey, a former housing counselor for California Reinvestment Coalition, a consumer advocacy group.

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