Don’t let late payments and missed opportunities create an unnecessary foreclosure.While you may have been qualified for your mortgage loan at the time you received it, circumstances can change. When they do, the ability to meet the terms of your loan may become difficult. It’s important not to ignore this problem and hope it will go away.
Signs that you need to take corrective financial action include making late payments, cutting back on credit card payments to have enough to pay the mortgage, or even using your credit card to borrow to make the mortgage payment.
There are a number of steps that you can take to get a handle on the situation:
Decide if this is a short-term or long-term problem. If it is a long-term problem, can you continue in the present mortgage?
Ask yourself the “do-I-really-want-to-do-this?” question. At first, the large payment seemed manageable, but do you want to handle it for many more years? Consult a professional local mortgage broker with national lending resources before taking any action. Perhaps your mortgage broker can help with finding a lender and refinancing the loan into a lower interest rate. Another option might be a longer mortgage with lower monthly payments.
Don’t ignore the possibility of selling the house and buying one that better fits your capabilities. Not only might the payment be smaller, but also, there could be a corresponding reduction in interest, property taxes and insurance.
Before making this decision, consider how long you have lived in the house and if the sale would bring a strong profit. If a sale would eat up most of your equity in new closing and purchasing costs, it might be better to sit tight and work through your situation.
Assess all your options and then take action. Don’t let late payments and missed opportunities create an unnecessary foreclosure.
Premiere Mortgage has offices on Maui and Kaua‘i and provides a wide range of services to the real estate community. Tricia Morris may be reached on Maui, in Kihei, at 874-8800, Wailea, at 891-8900, West Maui at 665-8800, on Kaua‘i at (808) 822-2300, or toll-free at (800) 813-7711.