Delinquent Mortgage Payment: How to Play the Game

Since the collapse of the real estate market in 2008, banks have turned into skittish little girls with their panties in a bunch. Now, even though many have been bailed out or merged into bigger money grabbers, they are doing everything in their power to avoid bad lending as well as handle delinquent mortgage holders. It turns out that there is a game being played leaving the guy that wants to make things right in a quagmire of compromising positions. If you have a delinquent mortgage payment, learn how to play this game to possibly get you back on track.

3 Months

You may be the type that prides yourself on being a stand-up guy who covers his responsibilities in a timely manner. But, your job recently cut your pay or worse, let you go and the wife or girlfriend has had a financial hit as well. Now, it feels like every corner you turn there is a hand out for what you owe. You decide to call your lender to alert them of your situation. They will not give you the time of day until you are delinquent up to three months or more. That’s right, when you try to do the right thing and work something out they are ordered by their higher-ups to wait this amount of time before any further talks can commence. So, unless you feel like chatting with some six dollar per hour Indian who will give you the run around in broken English, avoid all mortgage phone calls by ignoring the call.

Get a Lawyer

It may seem like another expense but in the long run it could be worth every cent. Renegotiation through an attorney can possibly bring some relief to your mortgage interest and if you get a lawyer early on there may be a chance that they will be able to renegotiate shortly into your default. This makes the usual unpaid three months or more not a factor in being tacked on to your new contract. However, if three months plus has transpired be aware that although the bank may lessen your percentage all the money owed is still taken into account.

Walk Away

If you just can’t pay the mortgage you can do a few things:

1. Short Sale – It is still best to have an attorney even for a short sale however sometimes a bank will be willing to renegotiate directly with you if you have a buyer ready to step in.
2. Sell – Sell as high as you can. Chances are you will lose money but you may be able to write off that loss as well as talk down some of what you owe.
3. Foreclose – This is the worst case scenario but if you don’t mind being blacklisted for years to come, walking away may be the only option.

A delinquent mortgage payment is nothing to be ashamed of. Money is business and emotion should be pushed to the wayside.  Do what you can, because you are not alone.

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