Falling behind on your mortgage payments can put you in a financial bind and, worst-case scenario, can lead to foreclosure. If your mortgage is late, you need to take immediate actions. Fortunately, you do have options to help you if your mortgage is past due. Here are some ideas to consider:
Call your lender or servicer immediately if you’re going to be late. The worst thing you can do is nothing. After you’re late, your grace period disappears, so a foreclosure action may be two weeks closer than you think.
Contact a HUD-certified counseling agency for more options. (Go to www.hud.gov or call Project HOPE at 888-995-4673). A HUD-certified counselor can advise you for free, help you with your mortgage servicer, and refer you to local resources that you may not know about.
Don’t allow your mortgage to become 90 days past due. Partial payments may not be accepted after 90 days.
Think twice about strategic default. If you owe a great deal more on your mortgage than your home is worth and are considering walking away from your home, research all the negatives before mailing in your keys.
Find out your alternatives to foreclosure. Find options at www.ftc.gov/bcp/edu/pubs/consumer/homes/rea04.shtm or http://portal.hud.gov/portal/page/portal/HUD.
The Mortgage Forgiveness Debt Relief Act of 2007 has conditions that expire after 2012, and not everyone is eligible. However, if you qualify, you and your spouse can avoid taxes on up to $1 million of forgiven mortgage debt. No one wants to pay taxes if he doesn’t have too! You can find more information on this important act for homeowners at www.irs.gov/individuals/article/0,,id=179414,00.html.
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Source:http://www.dummies.com/how-to/content/how-to-handle-an-overdue-mortgage.html
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