Lenders do generally work with customers who fall behind on their mortgage payments, according to Bankrate. People who are having trouble making the payments can also call the bank or mortgage center before missing any payments to talk about loan modification options.
People who cannot pay their mortgage should begin working with the mortgage center as soon as possible, suggests ReadyForZero. The company can begin the foreclosure process once the payments are 90 days behind. The process after that varies depending on state laws, but it may be harder for a customer to secure refinancing or other assistance after foreclosure begins. Many lenders are willing to offer a temporary deferment or forbearance if the customer is only experiencing a temporary hardship.
Lenders offer various programs to help customers afford their homes, notes Mortgage Center. Some of the most common are refinancing and payment plans. Payment plans work by adding a small amount of the delinquent payments to the normal payment, allowing the customer to gradually catch up without having to come up with a large lump sum. Refinancing changes the terms of the loan. It may lower payments, and the company may add the delinquent amount back to the total so the customer can pay them off later.
There are also options for people who simply cannot afford the home anymore, according to Mortgage Center. These usually do not allow the customer to keep the home, but they can avoid foreclosure which can make it easier to buy another house.