No one likes to avoid paying their bills. Sometimes, however, that's what happens.
If you have had trouble paying your bills and missed a mortgage payment what should you do? Call and speak to the mortgage company. Do not duck their phone calls!
Once you have missed one or two payments, and have not contacted or responded to the bank, the lender will start the process of foreclosure. Once begun, it is very difficult to stop. Foreclosure will negatively affect your credit, perhaps preventing you from obtaining other loans in the future.
If your financial problems are temporary, you may be able to work out a plan with the bank to help you get back on track. Some banks will allow you to skip a few payments (and add them on to the back of your loan), some will assist you in restructuring your loan, and others will help arrange for temporary financial assistance.
When your money problems are not likely to go away, there are other options. The bank may give you time to put your home on the market and sell your home, allowing you to pay off the loan. If you owe more than the house is worth, the bank may agree to a "short sale," accepting the price you have obtained from a buyer. Sometimes the bank will accept your home's deed rather than go through the cost of foreclosing on your loan. Step by step options are described at http://makinghomeaffordable.gov/
DO NOT respond to advertisements claiming to have an easy way to avoid foreclosure. Many of these are "foreclosure rescue scams." Some promise a new mortgage loan but in fine print that they will gain ownership of your property. Some promise to take over your mortgage payments if you sign over the deed to them; then they own the house and you still owe the debt! Others promise to take over the mortgage payments and let you rent the house back from the new owners; only the rent they charge is even higher than the mortgage payments so you can never catch up.
If you are having trouble paying your mortgage or facing foreclosure, please call an HUD approved credit counselor
Ã?Â¢?Ã?Â¢(800) 569-4287 or visit http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm for a list of approved counselors in your state.