Website design By BotEap.comAfter my interview on FOXbusiness.com yesterday with Jenna Lee, Connell McShane and Dagen McDowell, it was clear from the emails that there are many people facing catastrophic problems paying their mortgages and, which is very worrying, many are waiting to the government. intervention to solve the problem. Although we hope to have useful answers and solutions tomorrow about what the government plans to do, there will still be a period of time to enact those policies. From my experience, that takes some time, something that many people don’t have. Therefore, I believe that those who are struggling should continue to take steps in the meantime to prepare to alleviate their situation. For those who find themselves in those situations, here are some easy steps to get started. More tips coming soon:

Website design By BotEap.com1. Try to stay updated: A foreclosure is devastating to a person’s credit and future access to credit, therefore we want to avoid it at all costs. Try to keep your mortgage current.

Website design By BotEap.com2. Set a budget: Determine all income and all expenses to understand where the money is going;

Website design By BotEap.com3. Reduce and eliminate expenses: Reduce expenses that are necessary as much as possible (lower insurance premiums, reduced utility costs and use, reassessed real estate taxes, food, clothing and transportation budgets) and eliminate those that are unnecessary;

Website design By BotEap.com4. Add income or sell personal belongings: If necessary, look for part-time work or supplemental income or sell unnecessary items (through things like Craig’s List, etc.)

Website design By BotEap.com5. Negotiate Unsecured Debt Payment Plans: If the payments are still too high to pay the mortgage, negotiate with unsecured creditors about the changed payments and stop using credit cards and debt immediately. Again, the desire is to pay off the debt, only on modified terms.

Website design By BotEap.com6. Determine the maximum affordable mortgage payment: Once all the steps above have been done, determine the maximum you can afford. If you can afford the mortgage on future payments, stick to your budget and ride out the storm. If you can afford your mortgage payments but you can’t get back your past due payments OR you still can’t pay your mortgage payments in full, then;

Website design By BotEap.com7. Contact the lender to discuss the modification: Now contact your lender to discuss modification options. This may include a forbearance where you agree to get back overdue payments over time, or a deferral of overdue payments until the end of the loan (thus updating it) or a true modification of the terms of the loan, including the pay. and / or rate reduction and / or term increase. Have all income verification and budget information ready. Make a plan of what you have done to reduce and eliminate expenses or increase income. Show the lender that you have done your homework. Try to meet face to face if possible. If you are not satisfied, contact an attorney to help you with the negotiations.