Mortgage Payment is Late

Late mortgage payments or not making mortgage payments at all is very common for homeowners in today's economy. Struggling to make mortgage payments may mean you are in some kind of financial hardship and can qualify for a mortgage loan modification. A financial hardship may include temporary job loss, medical issues, divorce or an increase in your mortgage payments due to an adjustment in your payment rate. Many homeowners are experiencing payment increases as much as 40% when they reach an adjustment period under an Adjustable Rate Mortgage. These adjustments can happen gradually over many years or smack homeowners in the face at one time and send them spiraling into debt.

Increases in mortgage payments are not sudden, in fact they are outlined from the time you closed on your mortgage loan. Just like most things in life we do not think about them until they arrive and a higher mortgage payment can throw any budget into a tailspin. Most homeownership advocates will tell you that Adjustable Rate Mortgages were handed out left and right to sub prime borrowers that may of not been ready for a home loan in the first place. Putting a home buyer into a mortgage that the mortgage broker and lender know a homeowner can not afford after it adjust is considered predatory lending. Victims of predatory lending have rights and can seek assistance through loan modification and loan audits.

Loan modification can help homeowners struggling to make their mortgage payments. Loan modification or mortgage modification can modify the terms of your loan, lowering your mortgage rate to a level you can afford. Adjustable rate mortgage loan modification is very common due to the high level in which these loans were sold to poor credit home buyers.

Making late mortgage payments will lower your credit scores, keep you in a cycle of debt and eventually lead to foreclosure. You do not have to struggle with high mortgage payments and rates if you feel you are a good candidate for loan modification.

What to Do With Late Mortgage Payments

Settling in to your dream home is one fulfilling experience. Finally, you and your family can feel comfortable, safe and secure in the years to come. Along the way however, unexpected events can take place that will threaten your ability to pay your loan mortgage on time.

The need for relocation, marital concerns, retrenchment and severe sickness by a family member are just some of these unfavorable circumstances. In the process, you may incur some late fees and start to worry about how you are going to get through.

Fortunately, there are various work out plans that you can count on. What is important is that you are able to monitor the date of your late mortgage payments and that you can also honestly communicate the problem with your lender.

The earlier this is done, the better chances for you at getting a feasible loan modification deal. With numerous foreclosures happening here and there, lenders nowadays are more than willing to draft that workout plan with you in order to save your home.

If your mortgage payment is late for more than 15 days, then you are likely to be charged a late fee by the mortgage company. Even if the late fees may differ with each lender, it is still going to add up to your burden. Immediately contact your lender, explain your situation, and ask for a possible extension.

However, if you can give them a call before the 15 days lapses, then they could offer to have late charges waived. What you need to do is to set up a future date to settle the account so that the lender feels assured of the payment.

Some words of caution though, do not complicate matters by promising payments you cannot fulfill. Set a date which you know you will have enough funds to cover them by then.

Likewise, if your mortgage payments are past due for a month or so, express your concerns with the mortgage company. Before you give them a ring, be ready with a date by which you are sure to make payments.

When you foresee that you will be unable to raise the exact sum of payment in the coming months then talk to your lender about the possibility of a loan modification that includes a reduction in the amount for the next few months. These payment modification schemes will allow you to manage your finances until you are capable of paying the full amounts again.

Lastly, try your best not to go beyond 90 days for late mortgage payments as this will mean foreclosure proceedings. When this happens, your credit report can get tainted and adversely affect your credit standing.

Stay where you are - right in the comfort of your home. Plan your mortgage payments ahead of time and prevent adversities from coming your way.

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