The first step in stopping a house repossession is usually to contact your lender and fill them in on your situation. After they have heard you out, they will likely offer you possible solutions, such as refinancing, modifying, or working out a payment plan on your loan. You may also be able to sell your home before the repossession occurs or borrow money from another source to catch up your payments.
Many people who are behind on their mortgage payments do all they can to avoid phone calls and other communication attempts from their lenders. This is typically because they do not have the money to catch up the payments and assume that their mortgage company will not be understanding. Avoiding communication with your mortgage company actually is the best way to ensure that house repossession will occur if you do not bring your payments up to date. They will probably appreciate your willingness to speak with them about your financial situation and might be more likely to offer you options that could buy you time and keep you in your home.
If you are in a situation where you do not make enough money to afford your monthly payments, you can give your lender a monthly breakdown of your debt-to-income ratio. After examining this information, they may be able to refinance your loan. Doing this could possibly lower your monthly payments and stop house repossession. Unfortunately, it will probably also extend the length of the loan, so you will end up paying on it longer than you intended when you were initially approved for it. It is important to keep in mind that some mortgage companies will not offer you this option if you have extremely poor credit.
Your lender might also offer you the option of modifying your current loan, which could also result in a lower monthly payment. Most mortgage companies require you to make a certain number of "trial" payments over a specified period of time so they can be sure you have good intentions and are able to make your payments. After the trial period is up, they typically decide whether or not you are eligible for the loan modification. If you are approved, your account typically becomes current and the payment cycle starts over. This is one of the best ways for you to stop an impending house repossession.
Other options you may be offered by your mortgage company include working out a payment plan on your past due payments and giving you a certain length of time to try to sell your home before the repossession occurs. If you are not able to sell your home for the amount you owe, the lender will occasionally take whatever is offered. In the long run, this could save them a lot of trouble because it may be easier than having to take possession of your home. If you would like to keep your payment arrangements as they are without going through the mortgage company, you could always try to borrow the money to catch up your payments. The only downside to this is that you will have to find a way to pay it back, which could be difficult if you are still having problems paying for your mortgage.
