Michigan Mortgage Trouble? Contact Your Lender ASAP

Few possessions are more valuable than the roof your head. Yet a growing number of people are facing foreclosure on their homes because they cannot keep up with the monthly home loan payments.

In some cases, especially in Michigan and throughout the Midwest, people have lost their jobs or encountered illness or other problems that have significantly drained their resources.

In other cases, they bought houses with little or no down payments, signing up for loans with initially low mortgage rates that have since ballooned, putting their home loan bills beyond their budgets.

Michigan has been especially hard hit, with a high unemployment rate.

But too many people are simply giving up and walking away from their homes, thinking they have no alternative if they can’t make their mortgage payments.

A mortgage lender - particularly in Michigan’s current real estate market - doesn’t want to foreclose on houses unless absolutely necessary. They do realize that if they do, they’re going to lose money and get stuck with a property that will be difficult to resell but remains both a property tax and maintenance liability.

Contrary to the image of greedy lenders wanting to kick people to the curb to seize their home, home mortgage loan holders want to help keep people in their homes.

But according to the non-profit Home Ownership Preservation Foundation, half the people facing foreclosure never even bother to contact their home mortgage company about working out some type of adjustment on their loan.

This is a huge mistake that leaves too many families homeless and home mortgage lenders alike facing unneeded financial losses.

It doesn’t have to be that way.

Many people could avoid foreclosure by going to their mortgage holder, explaining their situation and asking if they can reach an agreement that will make it affordable for them to keep their property.

Some people find themselves overwhelmed by their financial difficulties and think that the best solution is just to walk away from home mortgage obligations and let the lender foreclose on their home, although it may not even be necessary.

To do so can destroy your credit score and haunt your future. Try using some common sense when trying to resolve your financial problems:

• Deal directly with your bank or mortgage company.
• Beware of anyone who calls you or shows up at your door promising an easy way to keep your house.
• Such foreclosure rescue scams could end up costing you more.
  

For some, foreclosure is inevitable. But for many, a Michigan mortgage solution that’s beneficial for all parties can be reached. Investigate all your options before losing your home.

SOURCE: Ann Arbor News