Pursue options before defaulting on mortgage
If you are falling behind in your mortgage payments, the first thing you should do is pick up the phone.
“A lot of times it’s just a matter of telling your story to the bank,” said Jonathan Pinard, president of the Empire State Mortgage Bankers Association of New York. “But a lot of people avoid making that phone call.”
Some people worry the bank will immediately foreclose, while others think their lender won’t notice, experts said. Many don’t want to admit to themselves–or others–that they can’t handle their bills.
In fact, this is the worst thing a distressed homeowner can do. Not only are you increasing the risk of foreclosure, but you could wind up owing thousands of dollars in interest, penalties and legal fees, experts said.