You are Not Alone

I am having a hard time making my house mortgage payments. What can I do?

Foreclosure Rescue Scams pamphlets.If you negotiate a plan that is not affordable, you might not be eligible for another workout plan later.Find out how much your house is worth.If you are a veteran, try contacting the Veterans Administration.Many reputable real estate brokers will do this for free.Focus on an affordable outcome.This includes your two most recent pay stubs.Complete the To Do List below.Your servicer is the company that collects your monthly mortgage payment.Be very careful if you receive calls from companies other than your servicer or mortgage holder offering to refinance.See Does it matter who owns my mortgage?This plan might work if, for example, your company temporarily reduced work hours and there is a plan to increase the hours in the future or if you received a temporary leave from work.Beware of large fees and high interest rates.See our suggestions on bills to pay first and tips to possibly increase your income.To be eligible for these options Important: If you think that you are a victim of predatory lending, get legal help right away.Possible changes include reducing the interest rate, extending the term of the mortgage, adding the arrears to the unpaid principal balance of your loan, or even a principal forbearance.You can find their phone number on your mortgage bill.Modification: A modification is a permanent change in the terms of your loan.Find copies of last year’s tax returns and W2 forms.A principal forebearance reduces your payment by turning part of the loan into a lump sum you will have to pay at the end of the loan term.If you cannot negotiate an affordable plan, you have other options to consider.Read our Don’t Borrow Trouble!Your loan servicer will need this information in order to help you.Temporary Interest Rate Reduction: A temporary reduction in the interest rate may be enough to lower your payments for the short term until you are able to recover from your financial trouble.See our list of approved agencies throughout Maine.

Call a real estate broker and ask for a market analysis or broker price opinion.It includes any award letter from Social Security or the Veterans Administration, or notice of unemployment benefits or public assistance (such as TANF).Call your employer or the agency that pays your benefits.Having good records is important.Decide how much you can afford to pay for your mortgage, taxes, and homeowner’s insurance.

If you can’t get this, you can at least find out the tax value from your most recent tax bill or your town or city office.Housing and Urban Development (HUD): 1-800-CALL-FHA • See our page Making Home Affordable Program Proceed carefully.See the options under next heading below.Depending on who is involved with your loan there may be specific guidelines for the servicer to follow and steps they must take. If you don’t have these papers, get copies.See our Sample Hardship Letter.We will review those options below.Get copies of your bank statements for the last 2 months.Know your options.There are many ways the bank can help you if you fall behind on your mortgage or are having real difficulty making your mortgage payment.Notify the “escrow department,” to make sure that they know about the agreement • Make sure you can afford the plan.Make sure you can afford a forbearance agreement before you agree to it.31 = maximum housing costs.Keep good notes of all the contacts you make, including the dates and what you were told.A good rule of thumb is to stay under 31% of your total income.Be complete, honest and realistic.The list below is an overview of the most common options.Do not fudge your numbers.Refinance: Several programs exist that may allow you to refinance your loan under certain circumstances where you are still current on your mortgage.Contact the servicer or mortgage holder right away to see if they can offer any solutions.But you might have to make larger payments later on.Forbearance: The bank agrees that for a limited period of time it will accept a lower monthly payment or no monthly payment.Start a file for records relating to your home.Talk to a HUD-Approved Housing Counselor.Which one is right for you, or one that the bank will allow, depends on your individual situation.I am having a hard time making my house mortgage payments.You may want to ask for help to prepare the hardship letter.By following the To Do List below you will be ready to answer most questions your servicer will ask.A solution that is not affordable will leave you facing trouble again in the future.Keep it in a safe place where you will be able to find it easily.You can use our monthly budget form.Make sure you understand the terms of the agreement.At the end of the forbearance agreement you must bring the account current.He can help you decide if a refinancing deal may help you, or only put you in a worse financial position.Write down the reasons you fell behind or can not afford the mortgage.What can I do?Get list of HUD-Certified Housing Counselors.Be prepared to explain the events that led up to your financial problems. What are my options? A temporary reduction won’t work if the long term payment won’t be affordable later or if there is no realistic plan to increase your income. You need to know this in order to sort out your options.Pay high priority bills first.To Do List • Collect all the documents and put them in a file where you can find them.Be realistic.Collect your proof of income.If you are able to work out a deal, here are some additional tips: • Get the agreement in writing.Do a budget.