Tamara Bodrick: Hi! I am Tamara with Wells Fargo & Company. Today we're discussing what to do if you're having trouble making your monthly mortgage payments.
Keeping up with payments can be difficult especially with circumstances by job loss, decreasing home values or over extended credit. By reaching out to your financial institution early, when challenges first arise, you keep more options open. If you are facing payment challenges with your mortgage, there are many options available; you shouldn't wait another day before taking a close look at them all.
Some of the best options available to you are refinancing of your loan, a repayment plan or loan modification, any of which may allow you to get control of your payments and keep your home.
Refinancing may be the best option if you are current on your mortgage payments. Switching to a fixed-rate or lowering your monthly payments may help you avoid falling behind later on. If you are behind due to a temporary hardship, a repayment plan helps you catch up once your finances are back in order. A repayment plan let you pay back portions of your overdue amount with your future monthly payments.
If a hardship has made it difficult to keep up with mortgage payments, a loan modification could make them more manageable. A modification lowers your monthly payment by changing the terms of your loan, such as interest rates or years allowed for repayment.
You should know that the foreclosure process and mortgage assistance process may take place at the same time. Make sure to work very closely with your bank or financial institution to explore all mortgage assistance options that may help you to keep your home.