Most people get flooded with debt have credit card bills and mortgage payments as their biggest obligations. While there are simple ways to deal with credit card bills, mortgages can be a bit trickier. It is also more significant to focus more on your mortgage obligations because taking it for granted can lead to the foreclosure of your home.
The best time to renegotiate a mortgage in order to keep away from foreclosure is before the lender can file for a Notice of Default. Lenders often do this to protect their interests in a property even when they do not really want to foreclose. So, if you have reason to believe that you will not be able to settle your mortgage obligation, be sure to call your lender and notify them immediately. While you may consider the situation a bit embarrassing, it is highly inadvisable to put it off because delaying will only make matters worse for you. Here are some options that you may discuss with your lender if you call them before they file for notice.
Your lender may propose that you apply a solution called forbearance, in which case your lender will help you work out a more practical mortgage payment plan.
Another possible solution is refinancing, wherein the lender adds your missed payments to your outstanding balance and then re-amortizes your loan. You may also want to take advantage of something called partial claim, wherein the lender lets you take out a smaller loan that is enough to cover your missed payments.
There are a lot of choices that you can openly discuss with your lender.