Cannot Make Mortgage Payments

You bought a house through a home mortgage loan and are living happily in it or are preparing to renovate it, thinking of colors, designs, textures etc. Until a dark cloud in the form of the first payment of the mortgage comes and rains on your parade because you have come to realize that you can’t pay up.

Ever been in this situation? If yes, then you find yourself all alone. A lot of people eventually find it difficult to pay mortgage, whether it’s because you recently lost a job or ran out of resources or become bankrupt etc.

The best thing to do in this situation is to solve it before the problem overwhelms you. A lot of people make the mistake of ignoring their payment notices. Avoid such a thing because if your credit good you are eligible to take out a second mortgage. The moment you fail to make a payment you loose this option. The lender will think if you can’t pay off your first mortgage, chances are you won’t even pay the second.

In most cases you are given a grace period of fifteen days. And if after fifteen day you can’t come up with the payment, the lender may foreclose the house on statutory basis or judicial basis.

If the lender forecloses the house on statutory basis, he would have to go according to the rules which require him to send a notice and give the borrower time to make the payment.

If the lender forecloses the house on judiciary basis, he is required to file a complaint and go through the process of getting the rights to the house foreclosure. Till then the homeowner is allowed to stay inside his house till the lender does not get the foreclosure notice. The former is a comparatively fast process than the latter.

A lot of lenders choose to stay away from the expenses of foreclosure; therefore they either grant the homeowner grace periods or work out an agreement, at time accepting small fractions of payment.

If you do get a notice of home foreclosure, it is wisely suggested that you contact a lawyer who will be able to assist you and provide details, which will help you in understanding the whole procedure better.

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