If your financial situation is not too bad, you can resolve your mortgage problems on your own, assuming you can act right away. There are a few options to let you continue mortgage payments and catch up on the mortgage arrears:
- Develop a sensible household budget, and always stick to it.
- Evaluate your existing budget for costs you can eliminate or reduce. If you have no financial ability to pay all those debts, try to pay the high priority debts first, like your mortgage.
- Negotiate with your lender (s) for reduced payments and put any money you save toward the mortgage. If you need assistance negotiating, schedule a meeting with a federally-approved credit counseling agency.
- Consolidate your debts to reduce the monthly debt payments.
- Borrow some money at lower interest. This can be a good option if you're sure your financial setbacks are temporary. For instance, although you fall behind on the mortgage because you are laid-off, but you will have a new job next month.
A few possible sources of quick short-term cash may include
- A loan from a relative or friend.
- A credit card cash advance.
- Money borrowed from the retirement account.
- Money borrowed from the cash value insurance policy (whole life).
Do not borrow money from those sources except if you are absolutely sure that your financial setbacks are behind you and you will be able to repay your loan. You only complicate your life otherwise.
If you're having some problems paying a federally-insured mortgage, you can get help from a program or plan that other homeowners are not eligible for.
To find out, you should get in touch with an agency that insures the loan, such as HUD (Department of Housing and Urban Development), the FmHA (Farmers Home Administration), or the VA (Department of Veterans Affairs). If you received your loan through a local or state housing program, call the agency that administers your loan.