So, what’s the best way to catch up on your mortgage if you’re about to miss a monthly payment? My name is Marquis Davis with Preferred Home Offers here in Savannah Georgia and we help people just like you overcome and prevent foreclosure and debt collection due to unforeseen situations such as COVID-19 Pandemic, job loss, divorce, back taxes, or any other situations that arise.
If you think you are about to miss a mortgage payment you probably want to know a few things. What’s the best way for me to catch up on my mortgage so that I don’t fall into foreclosure? Most people when faced with that problem think that if they just call the bank and try to work it out that they will get a solution to that problem. Other people have the mistaken idea that if they make a partial payment like a half payment that somehow the bank will work with them and they will apply that payment to catch you up to the next month but that is not usually the way it goes. If you make only a partial payment, they are not actually going to apply it to your mortgage loan, but they will hold it in a separate savings account called a suspense account. The suspense account Is where the mortgage company place the partial payment in, and they will not give you credit for having made that payment until they get enough where they can apply it to the full monthly payment. However, you are already one month behind or two months behind or however long it has been, so you are not going to get credit for good intentions. You are not going to get credit for making a partial payment and when you call them and ask them for help anytime, you are talking to the bank on the phone there is no way for you to make them do what they promised on the phone. Any promise they make you on the phone they are likely going to not tell you the truth for a couple of different reasons.
Firstly, the person on the other end of the phone does not know what they are talking about. Secondly, they are trained to get you off the phone as fast as possible without giving you any real information. Lastly, it is not their job to help you, but it is their job to answer the phones and get rid of phone calls as quickly as possible. Basically, you are wasting your time If you call them on the phone because they are not there to help you but to help their boss. What you need to know is if you call them, they are not going to give you any real useful information about how you can be helped to catch up.
Here is what we generally recommend if you were about to fall behind on your mortgage loan. You need to first identify is this a permanent problem or is this a temporary problem? Are you missing a month because you’re out of work for an injury and you’re going to be back next month? Are you sick and you are going to be making money next month? You need to identify what the issue is. If you lost your job and you do not know when you’re going to be able to make your next payment and don’t know when you’re going to get your next job, then you need to also identify that as well.
Once you get your next job and you can perform on the loan then I recommend paying extra. For example, let’s say your monthly payment is $1,500 and you miss one month. Once you’re back at work and you’ve got the ability to make your regular payment plus a little bit extra, I would recommend instead of $1,500 make 2,000.
If you can do that, do it for a few months until you are completely caught up with that one month’s payment that you missed because they are not going to just let you shift that payment down the road. The banks will consider you in default because you never made that one monthly payment, and you will continue to be one month behind even if you are currently making that regular monthly pay. Make sure that you plan to pay extra every month as soon as you possibly can to catch up on that past due balance. When you get your mortgage statement it will tell you how much you are behind, and you will need to budget for that as much as you possibly can.
if you have a more permanent problem if you are going to be out of work and do not know when you are going to be getting a new job then you will need a much more long-term solution. Give us a call and we will buy you out of that situation and pay all closing cost for you. Our numbers is 912.226.1114. Let’s chat as soon as possible!