There could come a point when you find that you are no longer able to afford your mortgage payment. While this can be a difficult realization, you don't want to panic. Instead, you need to learn more about your many options.
To start, learn more about a loan modification. This is exactly what it sounds like: The lender agrees to modify the terms of your loan as to make it more affordable.
If this is something you want to consider here are several tips to follow:
- Contact your lender without delay. There is no point in putting this off, as you need to let your lender know what's going on, as this is the only way they can help.
- Make sure you're comfortable with the modification. You don't want to agree to a workout that isn't going to benefit you over the long run. If it's not sustainable, it's better to learn more about your other options.
- Be realistic. You don't want to go into the process looking for something that's never going to happen. Realistic expectations improve the likelihood that you'll settle on a modification that works for both parties.
Getting a loan modification is easier said than done, but your lender is willing to walk you through the process and help you understand what you can and can't do.
If you come to find that a loan modification is not going to get you what you want, it's time to turn your attention to other strategies. At this point, filing for bankruptcy may be next on your list.
Source: Bankrate, "5 steps to a successful loan modification," accessed April 11, 2018