If you are behind on your mortgage payments for each month that you wait to get help, talk to your bank or a credit counselor the more that it will cost you. It is not just the payments you have missed but all kinds of fees the banks will attach to your loan. If you stop paying your mortgage that might mean that your property taxes need to be paid by the bank and that need to be added to your loan. There are options available, loan modifications, short sales, bankruptcies and foreclosures.
Gather all of your financial documents, your tax returns for two years, every receipt and every bill so that whoever you talk to can get a correct picture of your finances. Don’t hold back because it will only end up hurting your chances of a modification if you are determined to stay in your house. The New York Times had an article in their Real Estate Section “Getting in the Black” an excerpt:
“THOUGH the threat of foreclosure has eased a little in the last 18 months, more than 2.6 million households are at least 60 days delinquent on their mortgage payments, according to Hope Now, a nonprofit coalition of lenders and agencies.
Beyond the obvious threat of losing your home, falling behind can be costly: lenders charge late fees as well as legal and administrative costs, and your credit score will suffer. Experts say the sooner you deal with the situation, the better your chances of making a full economic recovery.
If you are determined to keep your home but cannot immediately make back payments, you will need to meet with your lender or a credit counselor to consider your options. Among them are devising a repayment plan, modifying your loan, doing a short sale, and adding what is owed back into the mortgage balance”.