How to Avoid Mortgage Delinquency & Foreclosure

Denver homeowners are among the many Americans that have been greatly plagued by foreclosure in the last few years. But a slowly rebounding market and new legislation aimed at preventing lenders from approving loans that homeowners can’t afford are expected to curb the trend.

Delinquencies are typically defined as loans that are 30 to 90 days behind in payments. In many instances, the foreclosure process begins at that point. Foreclosure can be devastating for a family to endure. By learning more about negative market trends, you can position yourself so that you don’t have to face the same downfall.

Avoiding mortgage delinquency can be as simple as keeping a steady eye on your finances. By remaining aware of your spending patterns; maintaining and adhering to a household budget; and by managing your savings and keeping a reserve that can be used in the event of financial hardship, you can avoid financial peril and delinquency. Additionally, if you have an adjustable rate mortgage, it’s especially imperative for you to plan for increases in your mortgage payments.

But as we all know, even the most diligent and prepared can’t always overcome the unexpected. Illness or job loss can play a huge role in the deterioration of your financial situation. If you’re experiencing hardship, one of the most critical steps you can take to avoid delinquency and possible foreclosure is to contact your lender before you miss a payment. Communication will play a key role in determining a realistic solution and remedying what can be a terrifying situation. If you meet the problem head on, there are a number of options that your lender may be able to offer you such as:

• Allowing you to pay the past-due amount, late fees, and any penalties required by an agreed upon date.
• Allowing you to add additional money to your regular monthly payment until the past due amount has been paid in full.
• Granting you a forbearance to temporarily reduce or delay payment in times of hardship.
• Modifying the terms of your loan to make your payments more manageable.

If you have questions about the foreclosure process, give us a call. Whether you’re facing foreclosure and thinking about selling your home, or you’re interested in purchasing a foreclosed property, we can help answer your questions and guide you through the process.