 | Mark Kolarik is the President of the Kansas Teachers Community Credit Union, located in Pittsburg, KS, since 10-2002 and is a board member of the Kansas Corporate Credit Union located in Wichita, KS . He has been employed in the financial service industry for the last 31 years, having worked in several credit unions for 21years and 10 years in the banking industry. He holds a Bachelor of Business Administration degree from the University of Wisconsin-LaCrosse and is a Certificated Credit Union Executive. |
Banking & Finance
2011-06-01 12:07:00
Falling behind on your mortgage payment?
Question: I have fallen behind on my mortgage payment what should I do?
Answer: Millions of American homeowners are lying awake at night wondering how they’ll make their mortgage payments. Lurking nearby is the companion worry: Will we lose our home?
If you are in this situation because of job loss, medical bills, or other misfortune, you might be a candidate for a loan modification. Typically loan modifications benefit people who have a long-term financial problem. Or, if you’ve fallen behind in mortgage payments due to a temporary setback, your lender may suggest a forbearance agreement. In which you agree to resume monthly payments, tacking on an extra amount each month to bring you up-to-date on payment in a short time.
But someone with long-term financial troubles may not have the money to catch up over a short time. Then, a loan modification is a better solution. The lender modifies the loan to lower the rate or stretch payments over more years, making payments more affordable. If you owe past-due payments, the lender rolls those into the loan, so you can pay back the overdue amount over the life of the mortgage.
No matter where you got your mortgage, if you’re having difficulties contact our lender right away. Tell your story and be accurate. A housing counselor can help determine the options available to you. A counselor can also provide objectivity and look at the pros and cons of various situations.
Beware of solicitors who offer to help you save your house, for a hefty fee. No legitimate housing counselor is out looking for delinquent borrowers. There are a lot of scams out there. Be careful.
