- 1). Set up a meeting with your mortgage lender as soon as possible. If you've missed only two payments, it'll be easier to negotiate moving your mortgage out of default than if you've missed eight payments before the meeting. Bring any relevant financial information---pay stubs, bills and bank statements---to the meeting.
- 2). Discuss extending your mortgage term. If you make the term of your payments longer, you'll be able to replace the payments you missed. But this option will work only if you can get back on a regular payment schedule.
- 3). Ask about a new mortgage rate or a longer-term loan with reduced payments if you simply don't have the income to meet your mortgage obligations. You'll pay more in the long term but you'll be able to get out of default, and you can always negotiate a new deal when your situation reverses.
- 4). Contact your state housing finance authority or the U.S. Department of Housing and Urban Development to request emergency mortgage assistance. These programs are handled through individual states and can help you with a loan or a credit to make up for your missed mortgage payments. You'll have to ask your lender if it will accept assistance from one of these programs.
- 5). Look for a hard money loan. These can be difficult to find, but you'll be able to get immediate access to capital. There may be high fees, so be sure you can afford to pay back the hard money loan while also making payments on your mortgage. You don't want to end up in default again with another loan to worry about. Start at Lender Lab (see Resource) to find a lender.
- Advertisement -
- Advertisement -