Owning a home is the dream of every family, apart from being a way of accumulating and increasing household wealth taking in account that in the long term the valuation of housing tends to increase by value.
Most home purchases are financed through a mortgage, and the latter is, from a legal point of view, a guarantee contract that allows the creditor to ensure repayment of the loan, taking possession of the house in case that agreed payments are not met.
Every person last thing you want is to lose an asset for which he has worked so hard, especially if housing, but life is full of unforeseen circumstances and for some reason or another may fall in the failure to meet contract payments mortgage.
Mortgage arrears, apart from affecting your credit for a period of seven years, as in other loans, can lead to face foreclosure, better known in the US as a foreclosure.
Additionally, arrears mortgage to negatively affect your score and credit history, can automatically affect your credit cards raising their interest rates, making your payments are higher. This is due to the existence of universal clauses for late payment, which raise interest rates if your payments are late with other creditors.
If you have problems making payments on your home, it is important that you contact your bank immediately to find out what options they provide. Note that the bank is not interested in appropriating your house, what really will interest you is that loans are paid. If you consider options that provide you are not in your favor, you can contact a broker or advisor approved by the Department of Housing (HUD), which can guide you on other alternatives available to you.
Other aid agencies are Neighborworks and the National Foundation for Credit Counseling.
It is important to note that if for reasons beyond your payments are late and blackberry exceeds 90 days, the bank will require you to pay immediately all overdue amount, including penalties. If you do not meet such payment, the bank will start the implementation process.
• You can request a grace period in ques is deleted or temporarily modifies the payments, the same that will be made at the end of the grace period. It is very convenient if you are in the process of selling your home and the proceeds of such sale can make the payment at the end of the period. This also prevents your credit report is affected by a successive number of late payments.
• There is also a loan modification that involves changing the terms of the original mortgage so that it fits your requirements, such as a reduction in the interest rate.
• Short selling (short sell) implies that the bank authorizes the sale of the property below the mortgage value or total debt. Here you should request that the difference be reported to the credit bureaus with salso zero, otherwise they reported as charged off or canceled books.
• The sale of pre-embargo allows you to defer payments you can not do while you sell your home.
• And finally, if the propieded can not be sold and is listed with real estate broker, you can choose to deliver to the lender scriptures, and vacate. This option is known as “deed-in-lieu of property sale or foreclosure” because the scriptures deliveries bypassing the sales process or execution.
Unfortunately, unscrupulous people can take advantage of a difficult or desperate moment with false promises of redemption, becoming deliver advance money for their services, or pressuring the victim to sign documents of dubious content. It is therefore necessary to be alert, and communicate with people approved by the authorities to address these issues.