What To Do If You Are Having Trouble Paying Your Mortgage - Information from American Financial Resources

If you are unable to make your monthly mortgage payment the number one thing you should do is call your bank or mortgage lender. It can be a tough call to make as no one wants to admit they are in a tough financial position, but it is the most important thing you can do to avoid further hardship. It is also important to understand that you are not alone - many people are behind on their mortgage payments, are going through or have gone through foreclosure, or are living paycheck to paycheck. There is no shame in going through a financial rough patch, and there are ways back to financial security.

Possible resolutions when a homeowner can't make mortgage payments

When you talk to your lender it is smart to think through what you think the ideal resolution would be. Did you have a break in income for a month or two but are working again and will be able to make your mortgage payments from now on? Has your payment increased making it unmanageable? The solution will likely be different depending on whether you will be able to afford your mortgage payments going forward or not. The most important thing is to be up front and work with your lender. In many cases it will make more economic sense for the bank or lender to work with you to keep you in your home rather than to foreclose. Some of the options that may be available to them include:

• Spreading out the balance of the missed payments over the next several months.
• Reducing the mortgage interest rate either short term or permanently.
• Forgiving some of the outstanding principal on the loan.
• Extending the loan term so it is paid back over a longer time, reducing the monthly payment.
• Agreeing to short sale of the property.
• The resolution in each case will depend on the policies of the mortgage holder and servicer.

If you are still current on your mortgage but are concerned about how you will continue to make the payments we may be able to lower your monthly payment by refinancing your home loan. Get started online with American Financial Resources to learn more. You can also call 800-316-9508 or request a quote for current mortgage rates.