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Dealing with mortgage debt

Of all the different types of personal debt you may be unlucky enough to incur, possibly most serious of all is that of mortgage debt. This is simply because if your mortgage debt becomes so bad that you may default on the loan, you may be at risk of losing your actual home.

Talk to your mortgage company

As with virtually any type of personal debt, the first people you should talk to are the people to whom you owe the money. It is certainly true to say that companies which provide mortgages, or any other type of loan, would rather come to a compromise with you and help you fulfil your financial obligations, rather than use debt collection tactics. Generally speaking, when a customer defaults on a loan, this costs the company money and prevents them from making a profit on that loan. This is why your first port of call should always be the mortgage company, as they may be able to come to an agreement with you to enable you to make your payments.

Mortgage Payment Protection Insurance

If you took out a mortgage payment protection insurance when you agreed your loan, it may certainly be good sense to see if you are able to make a claim on it when in financial difficulty. The whole purpose of mortgage payment protection insurance is to support you should you be unable to make your payments due to unemployment, illness and some other scenarios. Unfortunately, many financial institutions are reluctant to allow you to make use of your insurance, but ultimately they have a responsibility to do so, and so you should pursue this option also.

What if you have just fallen behind?

If you have fallen behind with your payments but are now in a better financial situation, you may be able to negotiate with your mortgage provider to pay an additional amount each month to bring you up to date. Again, mortgage providers should be willing to negotiate this with you and by simply showing willingness to honour your mortgage agreement, this will work in your favour.

If you are several months behind

If you have failed to make your mortgage payments for two or three months in a row, this could rapidly become a very serious problem. By this point you will probably have received letters from your mortgage company informing you of potential legal action and repossession. This is certainly not something to ignore, and if you cannot come to an agreement with your lender, you should certainly contact personal debt advisers to see what your other options are.

Seek professional advice

If you are currently dealing with mortgage debt or any other kind of personal debt, it may be best to talk to professional debt advisers. At Dissolve Debt we have a team of personal debt experts ready to help you with the situation you find yourself in. Contact us today or fill out our free online consultation to begin to find solutions your problems.

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