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What do you do if you cannot make mortgage payments?

There are many advantages to purchasing and owning a home in Connecticut, from both a financial and personal point of view. However, owning a home can become burdensome if you have a change in financial circumstances and can no longer afford mortgage payments. 

According to the Consumer Financial Protection Bureau, you have several possible options to avoid foreclosure if this happens. A deed-in-lieu allows you to avoid foreclosure by giving the home back to the lender. A short sale is also an opportunity to dispose of your property and mitigate your loss. 

However, there may also be options that allow you to cope with the situation while retaining your home. If it is early in the process and your credit has yet to take a significant hit, you may be able to refinance your loan. Additional options include the following: 

  • Forbearance
  • Loan modification
  • Repayment plan

To find out more about the options that may be available to you, you should talk to your mortgage servicer. The sooner you do so once you start having problems, the better. Foreclosing on your property is not beneficial to the mortgage company, so it will likely be eager to assist you if you take the first step to resolve the matter. You can find the phone number on your mortgage coupon book or loan statement. Another way to explore your options is to seek out a housing counselor approved by the Department of Housing and Urban Development. You should take both of these steps as soon as you can. 

The information in this article is not intended as legal advice but provided for educational purposes only.