Serving Clients Throughout Upstate South Carolina

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What should you do if you cannot keep up with mortgage payments?

On Behalf of | Jan 18, 2022 | Bankruptcy

Looming financial troubles sent shock waves through your life. Not only may you claim bankruptcy, but you could also face home foreclosure.

The Consumer Financial Protection Bureau offers advice for navigating potential foreclosure. Learn how to communicate with your lender to keep your home and peace of mind.

Let your mortgage company know

Contact your mortgage servicer sooner rather than later. Let the company know why you may miss future payments or why you cannot pay your mortgage now. Share whether you expect temporary or long-term financial difficulties. Also, give your servicer information about your current financial status. Your mortgage company may have a program for borrowers struggling with loan payments.

Mortgage servicers offer options such as mortgage modification, refinancing, forbearance, repayment plans and short-sells. If you do not mind giving your home up, you may qualify for a “deed-in-lieu of foreclosure.”

Contact a HUD-authorized housing counselor

The Department of Housing and Urban Development could partner you with a housing counselor. Together, you may determine whether you qualify for supplementary help or programs, explore loss mitigation options and learn about working with your loan provider. Housing counselors also help homeowners with budgeting, debt and other monetary issues.

Look out for scams

You could encounter predators who scam homeowners struggling with mortgage payments. Foreclosure scams include upfront payment requests, guarantees of changing your loan terms, and guarantees of remaining in your home. Scammers also try to get their victims to sign over their home titles.

You may not lose your home after declaring bankruptcy. When you know your options, you have a better idea of which mortgage moves to make.