Financial hardship can bring added stress to many areas of your life. Your ability to repay debts you owe, such as a home mortgage, may dwindle and leave you questioning the stability of your future.
A foreclosure could impact your family and disrupt your children’s educational commitments, your career and everyone’s social life. If you feel concerned about keeping your home, proactive communication with your lender may slow the process so you can have the upper hand.
Know your options
A blow to your income does not have to determine your future. According to the U.S. Department of Housing and Urban Development, you can ask your lender what they recommend for preventing foreclosure. They may have suggestions or options that you can consider to maintain ownership of your home. For example, you may have the option of restructuring your home mortgage or renegotiating a payment plan that will work better for you.
Choosing not to inform your lender of your situation and hoping that they will not notice missed payments may only worsen your problems. Lenders that continually try to collect delinquent payments often have no other option than to issue a foreclosure on your property. Notifying them of your hardships may encourage flexibility and understanding on their end.
Reevaluate and reorganize
Another way to prevent or at least slow the foreclosure process is to reevaluate your budget and reorganize your debts. Take a hard look at your budget and determine where you can cut unnecessary spending. Look for creative ways to bring in extra money. If you have other debts, reach out to those lenders and ask them to renegotiate your terms and conditions. If you reach an agreement with them, it may free up some funds that you can put toward your mortgage.
Responding proactively to uncertainty may help you maintain control over the fate of your home. With a modified agreement in place, you may focus your efforts on catching up on your payments so you can keep your home.