Having Trouble Making Your Mortgage Payments? Your Lender May Be Able To Help
For the average homeowner, monthly mortgage payments eat up around 30 percent of the family budget – far and away the biggest bill to consider each month. If you find yourself struggling to make the payment, it may seem counterintuitive to tell your lender the bad news. The truth is, though, most lenders are eager to help and may be able to offer you a restructured loan to ease the monthly burden.
Lenders have several loan restructuring tricks up their sleeves to help you stave off a scary situation such as defaulting on your mortgage. Some may be able to offer you a lower interest rate on your current loan, thereby reducing the monthly payment. Others will offer the option to defer a series of payments to the end of your loan, giving you a few months breathing room to get back on your feet. You won’t know unless you ask, so call your lender to determine whether either of these restructuring options might be on the table.
In some situations, lenders have even been known to forgive a portion of the principal amount you owe, though this is rare. If you’re exploring this option, you’ll need to prove you’ve suffered a significant financial hardship, like job loss or a family health crisis.
Regardless of your reason for requesting a loan restructure or loan forgiveness, it may be beneficial to put your request in writing. Spell out your situation in clear terms, and be open about the need for assistance. Lenders are not required by law to help you, but many have policies in place to assist homeowners in need.
Image via Flickr/thomasdavidson