The impact of the financial crisis and the slow economic recovery has impacted the ability of families to pay their mortgages on time for reasons beyond their control: loss of job, income reductions, catastrophic illnesses, etc.
Falling behind on your mortgage payments is not the social stigma it used to be and should be handled based on your financial reality and the understanding that you are looking for options that are in your best interest. The first question you need to ask yourself is if homeownership remains a sustainable option for you. The answer to this question needs to be specific and based on facts not emotions. Ask yourself:
- Can you reasonably make your mortgage payments and still put food on the table?
- Can you afford your mortgage payments based on your current income?
- Are you neglecting critical health care for you or a family member because you want to keep the house?
- Do you know how far behind you are on the mortgage payments, including penalties?
Homeowners facing foreclosure are encouraged to seek the assistance of specialized housing counseling agencies. Given the complexity of negotiating with your lender and leveraging the programs created to assist homeowners in that situation, you will need reputable professionals with the experience to find the right options for you and your family.
In the final analysis you may find that remaining in your house is not a realistic option and that you may need to look for an exit strategy. This realization is a very hard pill to swallow for homeowners who invested their life savings and who want to keep their houses at all cost. If you are in that situation, remember that you can rebuild your financial situation and when the time is right, find opportunities to become a homeowner again.