My Mortgage is a Mess!

My Mortgage is a Mess!

If you don't know where to begin describing the problems you have with your mortgage, then you know you're in a real mess. How you dig yourself out of this pit depends on how bad the problem is, how much patience you have to deal with it, and how much hard work you are willing to do in order to recover.


The usual mess that people find themselves in involves late payments or a drop in the value of the real estate. Missing a payment is something that is usual when there is a financial crisis. The scary thing is that some home owners may put so much of a priority on their mortgage payments that they fall behind on others – the credit card, the utilities, and other bills. It's a great stress just to make everything current.


A drop in the home's values is something that the home owners cannot control. Basically, they are stuck paying a high mortgage on a home that is worth a fraction of the debt it cost to purchase it. This is tougher on home owners that applied for second mortgages on their homes.


When people are struggling with meeting day-to-day expenses, taxes and insurance may be the last thing on their minds. This is tough, though, since being behind on the taxes can give you a lot of problems with government collection agencies. Insurance coverage may be dropped, giving the home owners a headache if the home is damaged in an occurrence like a fire, flood, or earthquake.


How do you put yourself back in control? Don't think that the problem will just go away; it won't. You'll need to know exactly how much you are behind and how much you still owe. Keep yourself informed on the problem.


Next, talk to your lender. Don't make yourself invisible in this instance. You may be able to ask the institution for help or they may be able to offer you another way to become current but it will be impossible to do so if they can't contact you.


Cut down on all the expenses that you can. Eliminate frills like a second car, another cell phone, an extra computer, even cable TV. Put your credit card in storage if you can. Now is not the time to add to your debts.


Can you raise extra money? If there is a chance at adding another job, taking on a part-time job, or just selling all your extra stuff, now is the time to do it. Check with a housing organization if you qualify for help. It's a tough thing to do, but if you're not aggressive in working your way out of this mess, no one else will do it for you.