Here are some tips that might help:
- Act fast – Seek help as soon as you realize you are having financial difficulties.. It only get increasingly difficult to get help the longer you wait ( Early intervention is key).
- Contact your lender; they may be able to help. Remember your lender wants to keep as a customer, and are often happy to help.
- Be prepared when you decide to talk to your lender ( have a detailed list of all your financial obligations including loans , credit cards, household bills, amount owing and your due dates, current income , savings , expected future income etc..) this gives the lender a clear picture as to what’s going on. In addition it shows some degree of responsibility on your part.
Depending on your financial situation, your lender may be able to :
- Convert your variable interest rate mortgage to a fixed interest rate mortgage in order to protect you from a sudden interest rate increase.
- Offer a temporary short-term payment deferral.
- Lower your monthly payments by extending your amortization ( eg from 25yrs to 30yrs)
- Add missed payments to the mortgage balance and distributing them over the remaining mortgage repayment period
- Offer a special payment arrangement that suits your situation.
Although none of the above solutions are certain it is worth inquiring. Being informed will definitely help you make the best decision for your situation.