How To Defer a Mortgage Payment

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Paying your mortgage on a monthly basis is truly a burden, especially with the way things are going in the economy nowadays.  At a certain point, you may be faced with some kind of financial crisis that can make your mortgage payment for several months completely unbearable.  If this happens and you do miss a payment, the lender may find it as a good excuse to foreclose on your property, leaving you homeless and penniless.  Fortunately, there are better ways to handle this situation.  One way is to request for a payment deferring plan from your lender.  Don’t worry; most lenders will be open to this to a certain extent - just be prepared to pay a little bit more, as these plans do come at a premium.  In any case, if you have no other choice, here are some tips on how to request and negotiate the terms of your mortgage with regards to deferring payment.

  • The sooner, the better.  The best way to handle your financial situation is to contact the mortgage company and discuss the possibility of paying your mortgage late.  This should be done before you even miss a payment, as this will show your resolve to solve the problem and will show that you do respect the terms of your mortgage.  Make sure to discuss your problem with the person in the company assigned to handle these types of situations.  Upon communicating your problem and future delinquency, the mortgage company should provide you with options on how to go about it.  Hopefully, an adjusted payment plan is one of these options.
  • Request a payment deferral plan.  These plans don’t come cheap, because the mortgage company loses out should you delay by even a single payment.  Hence, most mortgage companies will provide the plan but with added charges such as interest and penalties.  Nevertheless, this is still a good plan since your property will remain safe from foreclosure.  Some companies may provide you this option without charging anything extra, provided that your situation qualifies for it.  For instance, if your financial woes are due to medical bills, then most companies will provide you some leeway for this circumstance.
  • Back up your request.  To protect the company from having all of their customers request payment deferral plans, they will ask you to submit various documents to prove that you are really in dire financial straits.  You'll want to make sure that you have all the documents necessary such as bank statements, hospital bills, and anything else that can prove you really won’t be able to make the payment.  If you've lost your job and have no current stream of income, then you might want to provide documents proving that you are no longer employed or your business collapsed.  If possible, make sure to include documentation that you will likely pick up financially later on - such as paperwork documenting your search for a new job.  The mortgage company may not be willing to extend the payment plan to someone who cannot assure them of paying up in the near future.

If you are able to communicate your problem as soon as possible and back up your request for a deferral with legitimate documents, the mortgage company will have no problems approving your payment deferral request.  Again, most companies will penalize you with various charges for this type of plan so, be prepared for this eventuality.


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