If you are receiving notices regarding past due payment and possible foreclosure from your mortgage lender, take them seriously. We know that this is a stressful situation that is difficult to deal with, but ignoring it will not make it better. Therefore, you should take steps to address this situation right away.
You may be willing to deal with the situation but unsure of how to go about it. The following is a general guide to dealing with the situation.
Whom should you contact about your mortgage?
According to the Consumer Finance Protection Bureau, you should first contact your mortgage lender. If possible, you should do this before receiving any mailings or missing even one payment. It may be possible to avoid foreclosure proceedings altogether.
Several of the options available to you require you to undergo some sort of financial counseling program. You should ensure that these are both relevant to your situation and approved by the appropriate agency. There are dishonest people claiming to offer foreclosure relief or counseling but really trying to profit from your misfortune and desperation. Learn to recognize these and avoid them.
What options are available?
One of the options is to file for bankruptcy. This puts an automatic stay in effect that puts a temporary halt to foreclosure activities. However, the process can begin again once the automatic stay expires.
Because bankruptcy has a negative effect on your credit, most people prefer to save it as a last resort. It is not advantageous for your lender if you file for bankruptcy, so you may be able to negotiate an alternative arrangement when you contact the mortgage holder. You may be able to suspend payments in the short term and/or work out a modification to the loan or a long-term repayment plan. Refinancing may also be an option.