By Robert J. Semrad | Published November 30 2015 |
What Should You Do When You Fall Behind on Your Mortgage Payments?
Falling behind on your mortgage payments can be an incredibly frightening thing. You may wonder how you will catch up, whether you will be able to keep your home or even if you might end up on the street.
From the time you notice yourself falling behind on payments, you should begin to take action. While you may still have options later, there is no reason to wait for a notice from your lender about being behind or in danger of foreclosure.
Your lender and others may tell you that you have many options to choose from. In reality, some of these options are much better than others.
One of the most common tactics people use to stall or prevent foreclosure is a mortgage modification. A mortgage modification will likely lower your payment, but only on that one bill. It does nothing for the rest of your debts. For that reason, many people who choose a mortgage modification still end up behind on their mortgage within a few months.
When you took out your mortgage, you probably chose one that you could afford to pay each month. For most people, their trouble comes from their other debts growing out of control. As credit card debts and medical bills grow, it becomes harder and harder to make the mortgage payment that once seemed reasonable.
Other possible solutions involve companies who claim they can help you get out of debt. At best, most of these options are ineffective. At worst, some are scams.
The law gives you a way out of your debt problems. A Chapter 13 bankruptcy , also known as a debt restructuring, is a tool designed to help keep homeowners in their homes while eliminating medical and credit card debt.
The day your bankruptcy attorney files your Chapter 13 action, all foreclosure activity stops. Your other lenders must also stop calling and attempting to collect a debt. Instead of paying each lender individually, you will make one smaller payment each month that is split between all of your unsecured debt creditors. You will also need to continue paying your mortgage, car note and other secured debts.
In short, the first thing you should do when you realize you aren’t going to be able to make payments is to call DebtStoppers in Atlanta. Our experienced debt reduction team will help you explore all options available to help you stay in your home. To plan your free one-on-one debt consultation, contact us online or call us at 678-673-2142.