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Can’t Make Mortgage Payments: Here’s The First Thing You Should Do
Are you tight on bills this month and looking to make next months mortgage payment but have more month than money? In fact you may be on the line of falling into foreclosure.
In this article I’m going to show exactly what happens in the foreclosure process and how stop a foreclosure once and for all.
The foreclosure process starts when you miss your monthly payments. However a lot of times they will not file what is known as a notice of default until you have missed at least 3 payments.
Once you are in foreclosure the bank will begin the process of taking your home away from you and by this time if you have not gone to them and paid your mortgage current they will usually give you 90 days to move out.
This can be bad new because once you move out you will still owe them the money and will no longer own the property which means everything you have worked so hard for will be gone including the equity you have built up in the home.
In order to stop this from happening to you, you need to contact your lender at the first sign of trouble, not when they send the notice of default to you. Contacting you lender is the first thing you should do in this situation. Start by seeing if they may be able to refinance your loan to a lower payment.
Their are many different types of home loans available out there and your lender may be able to help you get approved for one of them and save your home.
However lenders will usually wait before handing you a notice of default if you have a newer loan and are paying more in interest to the lender they may be more willing to work a deal out with you.
On the other hand if you have had your current loan for 20 years or longer, lenders will be earning less interest from you and may be more willing to foreclose on you a lot quicker.
To rap up this article just know that you need to act fast at the first signs of trouble and talk to your lender before it’s to late.