Money troubles are often embarrassing, and it can be difficult to acknowledge when you are on the verge of a collapse.
If you have fallen behind on your mortgage payments and your lender is threatening foreclosure actions, you may feel overwhelmed. However, there are steps you can take to recover your financial wellness and save your property.
Speak to your lender
Your mortgage lender does not want to take your home. The foreclosure process is expensive for lenders and insurers, so it is in everyone’s best interest if you can make your payments and remain in your house. If you are having difficulties, it is important to call and inquire about alternative payment options including:
- Reinstatement: paying what you owe in a lump sum by a specified date
- Forbearance: reduced or suspended payments for a short time until you get your annual bonus, tax refund, etc. and can catch up
- Mortgage modification: changing the terms of your loan to make your payments affordable
For additional information, see the U.S. Department of Housing and Urban Development’s foreclosure prevention tips for Utah homeowners.
File Chapter 13 bankruptcy
If you reach the end of negotiations and still cannot recover, bankruptcy may be your best option. Chapter 13 bankruptcy is a debt repayment plan that stops foreclosure proceedings, providing immediate relief. Through the bankruptcy process, you will work with the court to reorganize your debt, which allows you the opportunity to keep your most important possessions and catch up on your payments.
If you are in danger of losing your home to foreclosure, you do not have to sit aside while debtors take your possessions. You deserve a chance to adjust and get back on track.