We have been in arrears for a couple of months by 1 month and we have made promises we've been unable to keep and now our mortgage company is threatening us with court action. We are both working two jobs now and will be able to pay the arrears but the mortgage company understandably have now got the hump and have said we need to pay by end of March but we don't think we can.
2007-02-26 06:04:11 · 2 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
Yes, your lender can demand payment in full if you're in arrears. You're an even greater risk to them if you've made promises you cannot keep. However, the best way to improve your relationship with your lender, when you're in this situation, is to be proactive. If you know it will take you, lets say, 8 months to get caught up. Contact them with a strategy to get caught up. Usually, one months payment, divided by 8, is only a few hundred dollars a month. You probably spend that on a crazy weekend alone. So, buckle down, make the phone call, make an arrangement you KNOW you can follow through on, and get back on track. You can do it!
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2007-02-28 15:21:57 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Your mortgagor has the option of starting foreclosure proceedings if they desire any time you are in arrears. However, in reality, they tend to work with their customers relative to payment terms, simply because foreclosure is generally a money-losing option for them. Typically, these initial threats are used as an attempt to 'put the fear of God' into you, in hopes of extracting a payment. Remain in contact with your mortgagor and try to contact someone a bit 'farther up the ladder', who may be more willing to work with you than is the typical front line grunt.
2007-02-28 08:44:20 · answer #2 · answered by acermill 7 · 0⤊ 0⤋