Making Sure the Mortgage is Paid on Time
by Michelle on June 16th, 2009
Increasing numbers of homeowners are having a difficult time maintaining a good payment history with their mortgage lenders due to rising unemployment and to sharp increases occurring in their monthly payments as a result of adjustable rate, interest-only, and “option ARM” mortgages. With nearly a quarter of the nation’s mortgages scheduled to reset in 2009, according to the Center for Responsible Lending, thousands of Chicago homeowners will be at risk of falling behind on their mortgages and perhaps even losing their homes due to job loss and high-cost mortgages.
Whether you are a homeowner with an adjustable rate mortgage or just know someone with one, the following is a list of action steps that can help you get control of your finances and save your home.
1. Create a budget. Identify and list expected income and expenses for the next several months to determine what costs can be reduced to set aside more money for making the house payment.
2. Contact your Servicer to inquire about a modification of your current loan, which can lower your payment and fix the rate of interest going forward.
3. Check your refinance options. If the original lender is not responsive, you may be eligible to qualify for a 15- or 30-year fixed-rate, Energy Conservation or Rescue Loan from ShoreBank. Successful ownership is still the best way to build equity. To learn more about your refinancing options or the Rescue Loan program, contact a ShoreBank mortgage lending specialist at (773) 420-HOME (4663). Consultations with a ShoreBank lender are free and there is no obligation.
4. Get help. Contact nonprofit organizations such as Neighborhood Housing Services in Chicago that has counselors available at no charge to help you to evaluate all your options. For assistance in Cleveland, Detroit, and other areas, contact The Housing and Urban Development Department at (800) 827-1000 to receive a referral to a financial counselor in your area.
And, do not forget, you can also provide help to those who are struggling to keep up with their mortgage. For example, a significant number of our refinance mortgage customers have told us that they discovered the Rescue Loan and Prevention Program because someone at work or a neighbor, usually someone without mortgage payment difficulties, encouraged them to seek help.
With the number of foreclosed, empty homes not just in our urban neighborhoods but in suburban ones too continuing to increase, it is vital that if we wish to get the struggling market back on its feet and stabilize our community, we need to do whatever we can to assist homeowners at risk.
Tags: community development, foreclosed home, green banking, mortgage payment assistance, refinacing, ShoreBank, triple bottom line
Trust me, mortgage refinance lender is more than just that. With the mortgage melt down, and the increases in forclosures across the country, many lenders are not dealing with people that don’t have a stellar credit score. All of this is what makes it very hard right now for a home loan for people with bad credit.