Payment Arrears

Payment Arrears !

There are many homeowners who face problems when it comes to paying off their mortgage installments on time. There may be situations that call for increased expenditure like the birth of a baby or loss of income, like losing a job. In such cases the homeowner may be in danger of losing her home altogether because of non-payment.

It is wise to decide quickly how you will act, if you find yourself in one of these predicaments, because you are in real danger of losing your home outright. Talk to your lender as soon as possible and let them know the course of action you plan to take. Provide them with a detailed statement of income, expenditure and outstanding debt. Outline the steps you plan to take in order to reduce expenditure and increase income. Also, talk about the changes you want to bring about in your mortgage and how these changes will affect your payments. At this point, it is prudent for you to seek professional advice, which is what we provide.

It is essential to keep paying off your mortgage on a monthly basis, no matter how little the amount. This will help keep your arrears from rising too quickly. Paying off your mortgage should be your top priority, above the other debts you may have.

There are a few methods that can help you out in such a situation. These include taking a “payment holiday”, switching to a different mortgage, adding your arrears to the mortgage, extending the number of years on the mortgage, reducing or stopping your capital repayments temporarily, or surrendering or selling your endowment policy or other investments.

If you seek help before the situation gets out of hand, chances are high that you will be able to pay off your mortgage, after all, with the least amount of damage to your credit history.