In this current economic crisis many people are facing financial troubles that may result in a foreclosure. There are many options available to avoid foreclosure.
Many people try to sell their houses before it goes into foreclosure, however with the current housing market it may be difficult to keep up with the mortgage payments while the house is on the market.
Natalia Osorio Editor of the “Loan Modification Foreclosure” website — https://www.LoanModificationForeclosures.com — pointed out;
“…One of the most frequently asked questions is whether you can make partial payments to your mortgage company while it is on the market. There is no simple yes or no answer to that question as it depends on your mortgage lender. Your best course of action is to contact your mortgage lender immediately to explain the situation…”
Mortgage lenders are currently faced with a multitude of foreclosures, and they are losing millions of dollars monthly. A foreclosure on average will cost them on average about $100,000. Therefore most mortgage lenders will be more than willing to work with you. If they know that you are planning on selling the house it means that they will eventually get the full amount of their loan back. Therefore partial payments for a few months while it is on the market may seem more feasible to them. It is important that you stress to them that if you cannot make partial payments you will not be able to make payments at all.
While the above scenario seems to make sense for mortgage companies to agree to allow partial payments, there are some mortgage companies that will not agree to such terms. The reason for this is mostly because of accounting problems. With a partial payment they will not know whether to put it towards principal or interest. In this case you can appeal to the loss mitigation department to try and restructure your loan agreement. Some lenders will require a certain amount of time to pass without a payment in order to grant a loan modification. However just remember that the faster you contact your mortgage company the more options you will have.
“…Keep in mind the current housing market. Most houses are sitting on the market anywhere from six to nine months. Assess how much you have in savings and how much you think you will be able to pay to your mortgage before contacting your mortgage company. For example if your monthly mortgage payment is $2,500 and after assessing your finances you decide that you can only pay $1,500 per month. Then you can use that number to give to the mortgage company. You also may want to consider a foreclosure assistance company. These companies will help you go through your finances and determine how much you can pay and may also negotiate with your mortgage lender on your behalf…” N. Osorio added.
Further information about how to get professional assistance with a mortgage loan modification by https://www.LoanModificationForeclosures.com