behind on mortgage
Question: If I am 5 months behind –off and on payments because of sickness , will the lender put those in the rearer all in one and let met me pay it like that? Could that be considered, and play some kind of catch-up.?
Answer: It depends on the lender. In most cases a lender will allow you to defer one or two payments and add them on to the end of the mortgage. However, once you fall three or more payments in arrears the lender will often begin taking steps to foreclose and recover their money. However, given the increasing number of foreclosures that are happening, it may be possible to negotiate with your lender. We recommend the following approach:
First, make a detailed monthly budget to determine what you can afford to pay over the next few months.
Next, call up the mortgage company and offer them a payment plan. If your budget shows that you can afford to pay $1,000 per month, that’s what you should offer the lender. If your normal payment was $800 per month, your lender may allow you to pay something extra each month until you are current. The key is to present your lender with a plan to get back on track.
However, if you are five months behind and have no hope of getting caught up, and if your house is more expensive than what you can afford to pay, it may be wise to sell your house and pay off the mortgage, and find a less expensive place to rent. If you are going to lose your house to a foreclosure, it is better to sell the house on your own, so that you can recover the maximum amount of money.
A credit counsellor may be able to assist you further if you have any questions about your options and alternatives.