The best preparation for tomorrow is doing your best today.
H. Jackson – Brown, Jr.
We get up every morning to go to our jobs or careers, so we can provide for our families. When the mortgage payment comes due for the month and somehow we end up short, we get worried.
That is the first thought that would jump in my mind when we were going to lose our home. Every month seemed like a struggle to make the mortgage payment. Our taxes or homeowners insurance would go up almost every year.
Then there was the upkeep of the house and yard was another expense that we had constantly every month. We would never know exactly how much we would need, because you don’t know what would break or go wrong.
I am here to let you know that there is hope at the end of your financial tunnel with your mortgage. There are a few options to working with your mortgage company and not dodging them. 😎
Knowing Your Financials
Before contacting your mortgage company you need to know all of your financials (debts and income) for your household. You need your gross income (before taxes).
The way to calculate your income if you are paid bi-weekly (every two weeks) is you take your bi-weekly amount and multiply that amount by 26 (how many paychecks within a year), then divide that number by 12. This number is your monthly income.
Ex: Let’s say my gross income every two weeks is $750. Multiply 750 x 26 = $19,500 / 12 =$1,625. My monthly gross income is $1,625.
If you are paid $750 bi-monthly, you would multiply $750 x 2 = $1,500. My monthly gross income would be $1,500. Weekly would be $750 x 4 = $3,000. My monthly gross income would be $3,000.
Contacting Mortgage Company
Contact your mortgage company and ask for the loss mitigation department. Explain to the department that you have a hardship ( reason why you cannot make your payment).
Your mortgage company should go over a few different options with you depending on your hardship reason. If you want to keep your home some options will be a forbearance plan, repayment plan, and a modification.
In my forthcoming book called Big Banks Small Thinking, I will be going into detail on the plans offered.
