Steps That Can Ease Mortgage Payment Troubles

Most people run into trouble by not addressing the problem as soon as it arises resulting in their missed mortgage payments and penalties quickly adding up. Fear and embarrassment keep most from finding the help they need. Many are afraid the lender will automatically take their home if they find out they are in financial difficulty. There are a few simple things you can do to help ease the financial burden and set yourself up for financial success.

Contact your bank as soon as possible

Putting your head in the sand and hoping the financial difficulty will pass is not the answer. You need to be proactive. Even if you haven’t missed a mortgage payment yet, but the writing is on the wall, speak with your lender about the options available to you. Most lenders will be more than happy to work with you in order to avoid missed mortgage payments. They might be willing to increase your amortization to lower your monthly payments and make them more affordable.

In extreme cases they might even be willing to structure a temporary payment deferral to allow you greater flexibility. In cases where you have already missed some mortgage payments your lender might be willing to roll those payments into the principal owing on the property and they will get paid off with the mortgage over time. Remember, Banks are in the business of lending money not owning property and they will do whatever they can to avoid foreclosing on your house.

Know your financial situation

There is no sense in asking your lender to lower your mortgage rate unless you know how much you can actually afford. You don’t want the lender to go through the work of restructuring your mortgage only to have you miss your payments anyway. You need to do a quick home budget to add up the money you have coming in during the month less all of the financial obligations you need to meet. As well, make sure you have a current picture of all your outstanding debts and the monthly carrying cost for that debt.

Brad Compton: Email bradcompton@invis.ca
Mortgage Consultant
Invis Inc - phn: 416-671-2183
www.YourLowMortgage.ca