Missing payment on your mortgage could put you in a very dangerous situation.  Three consecutive misses in your payments can force your lender to file for foreclosure.  This is why consumers are advised to pay close attention to their payments.  However, there are times when financial crisis can make it difficult for you to keep up with your payments.  When this happens, what can you do to avoid foreclosure? 

Is there a way to prevent your mortgage lender from foreclosing your home?  In this article, we’ll discuss the steps you can do to save your home property from the risk of foreclosure.  Consider the following tips:

Speak with your lender.  If you know that you won’t be able to submit your payment on time this month, notify your lender right away.  Explain why you’ll be delayed in submitting your payment and when you intend to do so.  But who should you speak with?  Explaining your situation to the wrong representatives of your lending company would be a waste of time. 

You should speak with the right department of the lending company to discuss the matter.  Lending companies have a loss mitigation department that specifically handles these matters.  Some lending companies refer to this as the “reinstatement department”, “modification department” and other related names.  

Bear in mind that you may not be able to get in touch with the right department immediately.  You may have to deal with busy lines or you may be put on hold for a long time.  Patience is really a must if you want to reach the right representative who can assist you.

Once you’ve contacted the right department, explain the problem and request for an extension of your payment deadline.  Most lending companies would require a client to submit a written request to know the details of the mortgage.  In this case, you need to be honest with your lender.  You may be asked to reveal some personal information particularly about your present financial situation.  For instance, if you’ve lost your job or if you were forced to shut down your business, you would need to explain this to your lender.

Let your lender know why you’re having difficulty with your repayment.  If you think that you’ll be facing tough times for a few months, perhaps you can also request for a modification of your loan’s terms.  For instance, you have the option for “reinstatement” wherein you can submit your payments at a later time.  Different options for modification are available depending on your lender.

Many lending companies would willingly give in to their client’s requests as long as it is reasonable and that they’re given an advanced noticed.  Foreclosure can be a time-consuming and complicated process and most lenders would rather modify their client’s repayment terms rather than push through with foreclosure.

The key to avoiding foreclosure is negotiating with your lender.  Don’t wait until you’ve missed your payment for consecutive times before you start taking action.  At the first sign of trouble, talk to your lender right away.

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