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When you are struggling to make your home's mortgage payments, you can experience a number of stresses. Whether it is the stress of exhausting your savings to keep your home or the fear of having the property foreclosed upon, you may feel overwhelmed when faced with this situation. For those that are struggling to pay the mortgage, there are a couple of tips that may prove useful in finding relief from this financial stress.
Keep Detailed Financial Records
Many borrowers are not aware of the fact that lenders often have repayment programs that are designed to help individuals that are struggling to make their payments. Banks and lenders want to avoid foreclosing on the property due to the costs entailed, and making payment arrangements is often a better alternative for both parties.
Often, lenders can grant temporary payment waivers or decreased payments to individuals that can demonstrate severe financial hardship. In order to qualify for these programs, you will need to provide financial records that show you are experiencing either a loss of income or a surge of temporary expenses. Any documents detailing medical bills, loss of employment, pay cuts and other factors that are limiting your finances should be copied so that you can easily provide them to the loan office for evaluation.
Consider A Strategic Default
There may be situations where it simply does not make sense to continue paying on the property. This may be the case when the property value has plummeted. When this happens, a strategic default may be a viable option. Under this type of default, you are essentially forfeiting the property to the lender to terminate the mortgage.
Not surprisingly, this strategy is extremely complex, and if it is not done correctly, it is possible to find yourself facing a lawsuit and other liabilities. Due to these factors, you should consult with an experienced foreclosure attorney, like those at the Legal Clinic Of Jerry Paeth, before deciding whether to pursue this option. These professionals can help you decide if this option is right for your situation, and they can guide you through the process to ensure it is done correctly.
Mortgages can be a tremendous asset when you are looking to buy a home, but they can become a trap if you encounter problems paying for the property. For those that are in this situation, knowing the types of information you will need to provide to qualify for loan relief programs and the viability of a strategic default can help you to make the best decision for your financial situation.