NEWS UPDATE: Federal Government Raises Insured Mortgage Cap to $1.5M, Expands 30-year Amortizations
Solutions For Getting Through Tough Financial Times
Economic stresses can happen to the most careful individuals. You may think you are prepared by planning, budgeting and saving, but unexpected issues can arise for various reasons. Identifying areas where you are the most vulnerable and making contingency plans is one aspect of the solution, but sometimes these efforts are inadequate. You need to know what to do if there is a loss of employment, health issues or a divorce. Here are some solutions for getting through tough financial times.
Even before you try to find solutions, you must have the knowledge about what your economic picture is under normal times and whether or not you are over- extended in the event of a fiscal emergency. Good record-keeping is always a smart approach to financial issues. If you can avoid the tough times, it is better than finding a solution after the fact. However, here are some pointers for when you have financial problems on the horizon.
Ask for help as early in the process as possible. Don’t let yourself be stopped by embarrassment or nervousness about approaching your mortgage company or insurer. Delay can affect your credit rating and can cause negative balances to grow quickly. Mortgage lenders understand that helping the borrower to get through the stressful situation is preferable to having a defaulted property on their books.
When you reach out to the lender, be sure you have the entire picture of your financial situation. You should be prepared to explain what event(s) have created the crisis. Have a detailed budget that shows your income and expenses, assets and a current credit report. If you have alternative income sources, they can be important. You should also explore any insurance coverage that might be available on credit cards or mortgages.
Bring any documentation that applies to your situation. You might have a letter of dismissal, insurance policies, fees on the property or documentation about your home ownership. Save time by having these available for the lender or insurer.
Be brave about asking questions. You may not know all the options available to you, but you can ask questions of the lender or insurer. You can ask for solutions such as deferring payments, capitalization of past due amounts or increasing the mortgage amortization term. There are many ideas which may apply in your particular situation. Finding the best solutions for getting through tough financial times will require some determination on your part.
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