What If I’m a Year Behind in My Mortgage Payments?

What If I'm a Year Behind in My Mortgage Payments?

What If I’m a Year Behind in My Mortgage Payments?

You may be behind only two months in your mortgage payments or up to two years behind! Wherever you may find yourself on that scale, the question is, what do you do and what’s going to happen? First and foremost, let’s be clear that it is vitally important that you keep in good communication from the get-go or as soon as possible. The longer you avoid notices due to embarrassment or denial, the worse things can get.

Lenders are usually very willing to work with you UNTIL a Notice of Default is filed. Once one of these is filed, it is very hard to work with your lender as they are looking out to protect their interest. So, be sure to communicate early and often. Also, keep a clear record of every time you communicate with your lender: the day you called, the name of the person you talked to and what you talked about. This can only help you later down the road. Remember, lenders do not want to foreclose, so if you’re unable to fulfill your mortgage obligation, contact your lender immediately so they can give you options to help you.

Options may include:

  • time to make up your payments. You may be granted something called forbearance, an agreement from the lenders to not take action against you while you work out a repayment plan that is affordable for you.
  • -forgiving a payment. The lender may grant you debt forgiveness, which means they may let you skip a payment or two if you can prove that you will be able to pay thereafter. However, this rarely happens.
  • repayment plan. Sometimes you can spread the missed payments out over a longer-term. For example, if your mortgage is $900, you may pay $200 more a month until you’re caught up, temporarily making your payments $1100.
  • -change the terms of your loan. Maybe your interest rate can be adjusted or maybe your amortization period can be extended.
  • refinance. You may be able to add the back payments to the balance of your loan if you have sufficient equity.
  • -partial claim. Some government loans have provisions that allow the borrower to apply for another loan to pay back the missed payments if they meet certain criteria.

The above are routes of action if a Notice of Default has not yet been filed. if one has been filed, your remaining options are to reinstate your loan, sell your home, consider a short sale or sign a deed in lieu of foreclosure.

To learn more, contact Advantage Legal Group.

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U.S. Foreclosure Inventory Goes Down

U.S. Foreclosure Inventory Goes Down

The May International Foreclosure Report from Corelogic is showing a 29% decrease in inventory from a year ago. According to their analysis there were 52,000 completed foreclosures in May 2013 and 71,000 in May 2012. That’s a 27% decrease.U.S. Foreclosure Inventory Goes Down

As of April 2013, current shadow inventory, that’s inventory owned by the bank and not yet on the market, was under 2 million units. 2 million units represents  a supply of about 5 months. Since its peak in 2010, the overall shadow inventory is down 34%. It is down 18% from a year ago.

Completed foreclosures indicate the number of homes actually lost to foreclosure. Before the decline in the housing market in 2007, completed foreclosures averaged about 21,000 per month between 2000-2006. 52,000 foreclosures were reported for the month of 2013! Since the financial crisis began in September of 2008, there have been about 4.4 million completed foreclosures nationwide.

Come May 2013, approximately 1.0 million homes were in some stage of foreclosure. In other words that was the amount of foreclosure inventory nationwide. In May 2012, it was 1.4 million. This is a year to year decrease of 29%. The foreclosure inventory of May 2013 represented 2.6 of all homes with a mortgage. In May 2012, it represented 3.5 percent.

At the end of May 2013, there are fewer than 2.3 million mortgages in delinquency or past due. This is at its lowest level since 2008. This means shadow inventory is at its lowest too. The president and CEO of Corelogic, Anand Nallathambi, said, “affordability, despite the rise in home prices over the past year, and consumer confidence are big contributors to these positive trends.”

If you would like help or information regarding foreclosures, mortgage mediation, bankruptcy or short sales, contact Advantage Legal Group.

 

Foreclosure Defense Seminar in Seattle

Sign Up for our FREE Seattle Area Foreclosure Defense Seminars:

Advantage Legal Group is offering three free Foreclosure Defense seminars in the Greater Seattle area:

  • Tacoma:  Wednesday June 19th from 7:00 PM to 9:00 PM – Greater Tacoma Convention and Trade Center – 1500 Broadway, Tacoma, WA. 98402
  • Lynnwood:  Thursday June 20th from 7:00 PM to 9:00 PM – Lynnwood Convention Center 3711 196th St. SW Lynnwood, WA. 98036
  • Bellevue:  Saturday June 22nd from 10:00 AM to Noon – Bellevue Hyatt Regency –
    900 Bellevue Way NE, Bellevue, WA 98004

Space is limited –  click here for details and to Register Online Now!

The seminar will cover:

Foreclosure Defense Strategies
Mortgage Mediation
Deed in lieu of Forclosure
Mortgage Modification
Short Sales
Washington State Foreclosure Fairness Act (FFA)

Sponsored by Advantage Legal Group