Question:

How to approach temporary payment problems?

Answer:

If you have only temporary payment problems, the lender may restructure your debt so that you could have your payments reduced. If you are having a forbearance agreement, make sure you make the most of it and pull yourself out of any payment problems, temporary or not.

If you had employment insurance, it could cover the costs of the mortgage payments for a year until you get a job.

If your financial pitfalls are only temporary, but the lender learns about it, they may try to foreclose if you have late payments. Even more so if you have enough equity and no other liens on the house.

Your temporary payment problems may frighten the lender and they may readily agree to short sale, to contract modification, or even assumption. The lender will want to sell the house while it still has a lot of equity to cut losses. Foreclosure is not what a lender wants - it is too costly.

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