What to do if behind on mortgage payments

A mortgage is a lengthy process and may take more than 10 years. It is clear that during this period, can happen a variety of force majeure, which may result in overdue payments. And it is very important not to lose the interaction with the Bank.

A mortgage is a large responsibility, because this loan is usually issued for long term (minimum 10 years). In life anything can happen, and sometimes quite decent borrowers allow loan arrears. Well, if it's only temporary financial difficulties more than three months, after which extinguished the entire amount of delay. Without a doubt, during this time, calls from Bank employees and even the letter will not give peace, and the amount of the fines may be considerable. So it is better to pay the loan payment and the penalty and sleep.

But what if really happened something serious, for example, the loss of paid work or other troubles and you are able to pay the bills? Very disappointing to lose the collateral for which had been paid regularly. Do not despair, because there are no hopeless situations!

To hide or go to confession?

The first piece of advice, which is suitable for absolutely any situation: do not hide from the lender. Many recent borrowers experiencing financial difficulties, try to avoid contact with Bank employees, did not respond to calls and do not respond to emails. It is fundamentally wrong, because in this way it is possible to lose property acquired on credit, fast enough. If the case goes to trial, ignoring the Bank, a borrower may be an argument in favor of the debtor.
Much smarter would be to collaborate with a financial institution and jointly seek a way out of this situation. At least one trump card in this case, you will have to go to the Bank statement, which will be described the reason for the delay of payment on the loan. Thus in court you can prove that going forward, the financial institution and have not refused to pay.
Remember that the lender is not profitable to take your collateral and to conduct litigation. Moreover, the Bank is interested in the payment of interest on the loan until the end of the term of the contract.

Debt restructuring

There is in the financial sector such a thing as debt restructuring. In simple words – a revision of the terms of the credit agreement with respect to the procedure of loan repayment. Usually in this case, changing the repayment schedule and can even delay payments for a while.

This is not the only way out of the situation, so feel free to go to the dialogue with the Bank and work together to overcome difficult times.