Five Steps To Protect Your Home
If you are a homeowner facing financial trouble or if the next change in your adjustable rate mortgage (ARM) will put payments out of reach, you may be at risk of missing a mortgage payment. Missing mortgage payments can put you at risk of losing your home. Here are five steps you can take to protect yourself and your home:
- Recognize the problem. The first step is to recognize you have a problem and that you need to deal with it. Rising rates and higher payments are threatening more and more homeowners' ability to pay their mortgages. You are not alone - but you do need to act right away, before the situation worsens.
- Contact your lender. Contact your lender immediately. If you have an adjustable rate mortgage, find out when it will next adjust, how often it can adjust, and how much it can change. If you're falling behind on your payments, don't ignore mail and phone calls from your lender.
- Get help. Call a HUD-certified housing counseling agency like Money Management International (1-866-889-9347) for help developing a plan of action designed just for you and your situation.
- Prioritize your spending. Once you know where you stand financially, look at your budget and prioritize your spending. See where you can cut spending to find the extra cash you need for your mortgage payment and other necessities.
- Watch out for scams. If you are looking for a fast fix to problems, be careful - especially of those charging a fee to help. One common scam promises to stop your foreclosure if you deed your home over to someone who promises to sell it, or perhaps let you rent it and eventually buy it back.
Getting help early can save you money by avoiding late fees and extra charges, ensure you have the chance to explore all the alternatives, and most importantly, will give you peace of mind.
