by Roy Primm
"Mortgage troubles demand right action
When you can only pay a fraction
You can avoid going into default
And bring foreclosure to a halt
And pay to your lenders satisfaction."
With rising loan defaults due to liberal lending policies of financial institutions, downsizing and a slowing real estate market. More black homeowners are experiencing trouble meeting their home loan payments each month.
With adjustable and interest only loan mortgages due to increase in the coming months, trouble could loom ahead. Many black homeowners may find themselves in a tight squeeze when it comes to making their house payment.
If you find yourself in this problem don't panic. Relax, take a deep breath, exhale - and follow the 6 steps below. When you find yourself having a hard time paying your mortgage the first rule is to ...
1. Take Action
A big mistake many black homeowners make is to do nothing. Hoping for a miracle to happen. To suddenly win the lottery or discover a rich uncle. Of course these cases rarely happen. And the homeowner finds themselves so far behind they can never catch up - or even negotiate a solution with the lender. Note: On average, the longer you wait the less the lender will negotiate). This brings us to the next action you should take and that action is to ...
2. Keep An Open and Optimistic Attitude
Through it all, try to keep an open and optimistic frame of mind. This is the only way to recognize opportunities and solutions when they come. Resist the temptation to hide, avoid, evade or sink into denial. Face your situation head on with steely eyed courage and you'll be surprised how far this attitude will get you.
3. Have A Plan To Catch Up On Your Payments
To catch up you'll either have to increase your income or reduce your expenses or maybe both. Sit down with pen and paper and work the numbers. Meaning figure how much you have coming in and how much you have going out. That's your first step out of this problem. If you don't know where you stand financially now - how can you develop a plan to reach your goals? I congratulate you for completing this step. It takes a measure of courage many homeowners' find difficult to muster in this situation ... looking at the cold hard numbers.
4. Contact The Lender
Another mistake many homeowners make who have trouble paying their mortgage is to run, dodge or try to avoid talking to the lender. Contrary to popular belief, most lenders want to know about your situation not because they want to punish you but because they want to see if they can help you. They may be able to help you by temporarily reducing your payments. Another solution? Letting you pay interest only longer, writing you a longer-term loan, thus reducing your payment. Or the lender may offer another solution you may not have thought of. Your lender doesn't want your house (if they can help it), they want the money they loaned you - plus interest.
5. Seek Expert Help
Seek advice from financial advisors, credit counselors or employment counselors if you think a second job can help you out of your situation. One word, suggestion or contact from one of these experts can help to free you from your problem or at least move you in the right direction.
6. Is Selling An Option?
Remember it's always better to sell your property or even give it back to the lender than to force them to take it in foreclosure. You can at least save your equity and maybe even some of your credit. In many cases you may have cash left over to make a fresh start.
Black homeowners have the biggest problem in losing their homes to foreclosure than any other racial category. When foreclosure happens a domino affect ripples throughout a black neighborhood causing other home values in the area to slow or go down.
Foreclosure can cause more neighborhood blight and other agonies in black communities. Hopefully this information will help to reverse the trend and more important give you the courage to overcome any temporary mortgage payment problems.
Copyright © MMVII, Roy Primm Research