Your mortgage payment is due by the 1st of the month – and it’s the 3rd – you missed your payment date for the first time since you bought your home – what do you do?
If you’ve missed a mortgage payment – here’s the WORST thing you can do: NOTHING.
Don’t call. Don’t respond. Simply stay silent and keep going with your head down, getting more and more anxious, daily. Simply sit in your house and wait for disaster.
If you’ve missed the first mortgage payment – here’ the BEST thing you can do:
CALL YOUR LENDER IMMEDIATELY – or even before if possible!
That’s right – no matter what your situation is – even if you have no idea when you’ll have the money or where you’ll get it from – call your mortgage lender immediately. This is especially true if you don’t have much equity in your home (if you do have a great deal of equity in your home, there may be other solutions). In fact – even if you haven’t missed a payment yet – but you know you are going to miss paying on time – it’s still a good idea to call your mortgage lender immediately! This is one of the most crucial pieces of advice we can give to anyone who comes to us for counseling or advice.
We know, we understand – it’s hard, it’s embarrassing; you’re anxious and scared that you might lose your home. Owing money when you don’t have any is incredibly stressful. But you need to put that aside and and take positive action. And that means – first and foremost – communicate with your bank!
What do we mean by communicate? We mean talk with your lender. As a matter of fact, if possible, go into your bank or financing office and talk to the actual person who set up your loan face-to-face. If they aren’t there, or you don’t know who handled your loan – you should still try to find a living, breathing human who works there in that office – and explain your situation. See if you can turn them into your personal representative, so that you always deal with them about your mortgage. Ask their advice. Develop a relationship with them. Keep them apprized of your situation, and stay absolutely transparent about what’s happening for you.
Why is this important? Put yourself in the lender’s position. Think about it. If you’ve missed a payment and they send you a notice or call you about it – and all they get back is silence, whoever has to do this work can only make the natural assumption that you are going to be a problem. They are not getting paid, and they are now going to have to go through a lot of work to deal with you. You have set up a relationship that is entirely negative.
If you’ve missed one payment, however, and you take the proactive step of calling your lender to talk about it immediately, then the lender doesn’t have to track you down, knows that you’re trying, and that you are agreeable and eager to pay. Given this, wouldn’t you be more open to seeking a positive solution? Banks and financing institutions don’t want to see people dig themselves into a financial hole because it means they lose money. You may think that it’s the worst possible thing that could happen to you, but the truth is – it’s the worst possible thing that can happen to your lender too. We guarantee that talking to your lender sooner rather than later will help you and your situation in the long run.
