Dealing with Mortgage Arrears

July 27th, 2009 | by admin |

If you are having problems with mortgage arrears, you know that there is no
other debt that will cause so much headache, anxiety, and panic. After all, you can live without cable television, you can deal without having you nice new Toyota and just go back to driving your old Chevy, you can even live without the credit cards and the morning latte or the spa visits but you cannot live without having a roof over your head. While it is ideal to head off mortgage arrears before they happen, once you are facing them you will need to deal with them quickly and decisively.

Since the lending industry has been exploding, there are a wide variety of different kinds of lenders who are currently holding a mortgage. Arrears are treated differently by each lender. The reputable ones will gladly work with the individual borrower to see what can be done to help her or him get the mortgage arrears caught up and current, while some of the not so reputable ones will simply want to bide their time until they can sell off the paper to a foreclosing agent. Find out which category your lender falls into by giving them a call to see what they can do for you.

If your lender is willing to work with you, you may be able to go ahead and make interest only payments for a couple of months until you get back on your feet. Conversely, you may be able to extend your mortgage loan by the number of payments that you are behind. If your lender is not willing to work with you, then you will need to seek ways to supplement your income to make bring the mortgage arrears current. While in the short run this might mean not paying other bills so as to pay your mortgage first, in the long run you may need to look at finding another job or even a second job. However, most lenders are very willing to work with the borrower. Many banks have special departments to deal with this topic alone. After all, if they work to help you, they will get paid more in the long run.

One misconception that has proven detrimental to a great many borrowers is the notion that a bankruptcy will help you to get out of your debts and keep your home. This is not the case. While you may be able to not have the home foreclosed on if you are current, you may have to give the bankruptcy trustee your homes equity. Similarly, if you are behind in your loan or if you have liens against your property by those whom you have not paid, you will most likely have to face a foreclosure sale. Thus, a bankruptcy for the sake of bringing mortgage arrears current is not a good option.

Whenever possible, you will need to deal with mortgage arrears quickly to prevent them from building up. Stay in contact with your lender and be open to solutions even if they do not appear attractive at the time.

James Copper
http://www.articlesbase.com/finance-articles/dealing-with-mortgage-arrears-237662.html

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  1. 8 Responses to “Dealing with Mortgage Arrears”

  2. By ann409983 on Jul 27, 2009 | Reply

    Lender trying to reposess due to arrears no equity in house going bankrupt any way i can keep house?
    Mental and physical collapse after separation from my partner got behind with mortgage. did an iva. Situation now, in arrears with mortgage. No equity in property. I really want to keep house for partner to one day come back to. Seems Bankruptcy only option.
    Doctor has said I am not at the moment mentally capable of dealing with anything so court official will be appointed. (No relatives or anyone else) After a year off work, now claiming benefits but dont think will be enough to cover mortgage interest.
    Lender will not consider any options. anyone know of any way I can keep the house, at least in the short term?

  3. By Kathryn P on Jul 27, 2009 | Reply

    Speak to your IVA adviser again. Maybe you can amend your IVA. In the long run I think you should admit defeat and go for bankruptcy. I did it and the relieve of all that stress was great.
    References :

  4. By barneysmommy on Jul 27, 2009 | Reply

    Hello

    Sorry to hear of your problems. Check with DWP you should qualify for interest payments on mortgage – that might pacify the Lender for a short time.

    I would advise you contact national debtline it is a FREE service.

    Hope they can help – details follow

    FREEPHONE: 0808 808 4000
    Monday to Friday 9am to 9pm
    Saturday 9.30am to 1pm
    24-hour voicemail. Please leave a message to request an information pack or factsheet.

    FAX: 0121 410 6230

    POSTAL ADDRESS:

    National Debtline
    Tricorn House,
    51-53 Hagley Road,
    Edgbaston,
    Birmingham
    B16 8TP

    Really hope you sort something out
    References :

  5. By jnjrothermel on Jul 27, 2009 | Reply

    check out other mortgage lenders, don’t be afraid to ask for a better loan…..and do ask for a 30 year fixed. do not get sucked into a two year apr or interest only loan as you are paying more interest on the first 10 years of any loan anyway. also, if you have a room that you could rent out for awhile, even if it means giving up part of your privacy,do so. check in the local paper and see what the average rent goes for in your area. renting can help provide the income to help get you out of your problem. just make sure to do research first……..then forget about the ex……and get on with your life…..don’t look back. you will be better off for it.
    References :

  6. By jpb293 on Jul 27, 2009 | Reply

    Hi,

    I’m sorry to hear of your troubles. There are two personal finance websites I visit which have excellent sections on dealing with debt. You can look for similar threads or post this query there and people will help you. I think you’ll get much better help on these specialised sites than on Yahoo Answers
    http://boards.fool.co.uk/Messages.asp?bid=50079
    http://forums.moneysavingexpert.com/forumdisplay.html?f=76
    References :

  7. By JayEleven on Jul 27, 2009 | Reply

    Hi

    Get your self down to the citizens Advice Bureau, or Welfare Rights office.

    They will provide you with free advice and no doubt they have dealt with many similar cases.

    Good luck
    References :

  8. By david g on Jul 27, 2009 | Reply

    If I’m right if you took the mortgage out before 1997, DWP will pay interest for you, if after that, your in shit. Go back to IVA and citizens advice.
    References :

  9. By yfscots on Jul 27, 2009 | Reply

    The FSA is the government watchdog for mortgages. I’ve put a link below to their leaflet explaining what you can do. The leaflet also has contact details of lots of people who can help you.
    References :
    http://www.moneymadeclear.fsa.gov.uk/pdfs/mortgage_cantpay.pdf

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