Marcia's Blog

4 ways delinquent borrowers can get back on track

If you’ve ever been behind on your mortgage, you might believe that it is impossible to catch up. But that can’t be further from the truth.

Many homeowners suffer through tough times and go on to turn their financial situations completely around. Here’s how you can do the same.


Lose the shame. Many people fail to get help because they’re embarrassed about being in financial trouble in the first place. Everyone goes through tough times and every professional you will deal with has likely seen someone who is worse off. Forgive yourself for any financial missteps you may have made and commit to doing better in the future.


Explore your options. When it comes to money, knowledge is power. While you may think that foreclosure is your only option, you may be able to refinance – even if you owe more money than your home is worth. You may also be able to qualify for a modification, which would reduce your mortgage payments. A HUD-approved homeownership counselor can help you to sort through your options

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Adjust spending and saving. Sometimes the problem isn’t that you don’t have enough money, but rather that you’re not spending it as wisely as you can. Use coupons to save money and shop in stores that offer sales and discounts. If times are tight because of a temporary situation, you may have to adjust your saving in the short-term, as well. For example, you could cut back on contributions to your 401k plan until the cash crunch is over.


Enlist the help of creditors. One of the biggest mistakes you can make during tough times is to fail to communicate with creditors. A homeownership counseling agency can help you set up a repayment strategy with your lender to get you current. You can also contact your utility providers and other bill collectors to enroll in payment plans that you can afford.


As serious as your financial challenges may seem today, troubles are only temporary. With help and commitment to a new financial plan, you’ll be back on track before you know it.