Tuesday, June 26, 2012

Help! I’m Falling Behind on My Mortgage… What Do I Do Now?




If you are falling behind on your mortgage, particularly in Miami, Florida, you’re in a lot of like company.  In fact, over five million homeowners across the country are in the same boat.  But the territory can certainly be frightening for many people, and you may find yourself wondering how long of a grace period you have and what is Plan A and Plan B (maybe even Plan C).

First of all—take a breath.  Many lenders provide grace periods, which is usually around 10 to 15 days after the day you were supposed to make the payment.  If you need to know the exact grace period, it should be printed somewhere on your paperwork.  If you mail your payment within this period, you likely won’t even be charged a late fee.     

30 Days
Once you reach the 30-day mark, your lender will not only have charged a late charge—they will likely be trying to call you or contact you by mail.  Don’t ignore this attempt at communication because your lender will probably offer you ways to catch up and avoid further late fees.  Also, any payment that is 30 days or more late will likely be reflected on your credit report and have an effect on your credit score.  If you don’t want the ding to happen on your good credit, you should do everything possible to make sure your payments are never more than 29 days late. 

90 days
Once you reach the 90-day late mark, your mortgage is at a high risk of foreclosure.  If you are nearing this, it might be best to seek the advice of bankruptcy attorneys who can work with you to help you keep your home.  

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