When it looks like you cannot make further payments on your mortgage due to financial difficulties, all hope is not lost. It is possible your bank will understand your situation and agree to change the terms of your mortgage. However, failing to keep up with certain actions may derail your efforts to save your home if you are not careful.
Nerdwallet suggests some actions you will likely have to take if you try to negotiate with your lender for a change in your mortgage terms.
Keep documents and notes
When you talk to your bank, record the time and date of your conversation as well as the name of the person you have spoken with. Also, take notes of your talks with your lender. If you receive letters and documents from your bank, keep them in a safe place. Additionally, make copies of any correspondence you give your bank.
These actions can help you keep track of your negotiations, but they may also be of service in the event your efforts fail and you end up in legal action over your home.
Meet your deadlines
You will likely deal with various timelines provided by your lender, such as trial payment periods if your lender agrees to modify your loan terms. Be aware of all your due dates since missing out on just one could cause your lender to revoke the changes in your mortgage.
Do not change your living arrangement
The terms of your mortgage modification may require that you remain in the home in order to receive assistance from your lender. In other words, you cannot move out of your residence or your lender may terminate your loan changes. You also probably cannot rent out your home to tenants even if it would help you raise money.
Hopefully, your diligence will help you through a tough financial time and let you save your home. In the event your current option to change your mortgage falls through, you may have other avenues to avoid a foreclosure on your home.