To answer a question from earlier today, if you have only missed one payment, don’t panic. Here’s what you can do…
So if you know you are in a harship situation, either medical, loss of job, family emergancy or whatever the case is, point is you can still contact your bank and request a forebarence.
What this does is place you on hold from making your payments for up to three months. Then what will happen is that they will request you to pay back what was missed over a period of up to three years.
It is one way to avoid going down the foreclosure route. However if the payment was missed because of an interest rate increase on an ARM and it is beyond your means to pay, then contact the loss mitigation department and ask for a rate reduction ASAP.
They will usually convert the rate for you under a modification within a few months rather than issue a NOD or Notice of Default. When the NOD get’s filed they will automatically move you to their foreclosure department, which adds additional legal fees to the loan.
For more information on tips and tricks to avoid foreclosure visit our site at www.BetterQuest.com