You think that you're going to go into foreclosure in the near future. Maybe you just lost your job. You got a part-time job to replace it, but you know it's not enough to pay the bills. Of course, you believe you'll have another full-time job in the future, but you anticipate a few months with far less income. If you miss all of those mortgage payments, you know you may lose your home.
One important thing to ask is whether or not your lender is open to a modification that may make it possible for you to avoid foreclosure and keep the house. This is especially possible if you can show that your financial challenges are temporary, and you fully expect to be able to pay off your debt in the future. Examples of potential modifications include:
- Extending an introductory interest rate to keep the payments down
- Fixing an interest rate at a lower amount if the loan originally called for an increase
- Extending the overall length of the loan so that you take a break from making current payments and simply make more at the end
- Increasing the balance of the loan to reflect the missed payments
- Simply allowing you to skip a number of payments, with the goal of starting them up again in a few months
Lenders may be open to these modifications and a lot more since they don't really want to go through the costly and lengthy foreclosure process. Make sure you know about all of the various legal options you have and what steps you can take.