Often you may think of problems with credit stemming form credit cards. However, credit problems can also arise from missing mortgage payments as well. And if you begin to miss your mortgage payments, not only will your credit become affected, but you may also lose your home to foreclosure. Lenders use foreclosure as a legal action to repossess your home. And if you owe more on your property than it is worth, lenders can pursue a deficiency judgment. A deficiency judgment can affect your credit as well. Follow the below steps to help keep your credit healthy and avoid foreclosure New Jersey.
• Never ignore any letters from you lender. If you are having trouble making payments contact your lender immediately. You can call or write their loss mitigation department and explain your situation. You will probably have to provide them with your financial information such as your monthly income and expenses, loan documents and information about your mortgage, tax returns and the amount of equity you have in your home.
• Stay in your home for the time being. If you leave and abandon your property, you may not qualify for assistance. A program called Hope for Homeowners, only offers 30-year fixed-rate mortgages to owners who are currently occupying their homes.
• You can also contact a HUD-approved housing counseling agency. They can provide you with information on services and programs offered by government agencies and private and community organizations. Generally, their services are free of charge. To find an agency near you, call 1-800-569-4287 or TDD 1-800-877-8339.
For more information about mortgage payments and foreclosure, visit usa.gov. If you have had problems in the past paying your mortgage and your credit has been negatively affected there is an auto-buying program for you. Visit your local new and used New Jersey auto dealer, Sansone Jr’s 66 Automall, and ask us about 866-Rent-2-Own today.