Posted on: 02nd Nov, 2011 11:29 pm
I have an ARM on my home and I won’t be able to afford the payments in the next month. Should I wait for the lender to approach me for modification?
As you are already facing financial issues and won't be able to afford the payments, it will be better if you could contact your lender now and apply for a modification. Though it is a fact that lenders won't consider your modification unless you are delinquent on your mortgage payments, yet it is always a better option to try beforehand. In case the lender agrees, you will be able to modify your loan now.
Hey Kevin,
Its always best to let your lender know if you are about to fall in debt or if you're having financial problem as soon as possible. In most cases, the lender will actually work with you in dealing with the problem (if it is only a temporary financial instability) by either modifying the loan or suspending the monthly payments until you're able to resume them; however, after the suspension is lifted, your monthly payments will be a little higher to make up for the missed payments.
Hope i could help!
Its always best to let your lender know if you are about to fall in debt or if you're having financial problem as soon as possible. In most cases, the lender will actually work with you in dealing with the problem (if it is only a temporary financial instability) by either modifying the loan or suspending the monthly payments until you're able to resume them; however, after the suspension is lifted, your monthly payments will be a little higher to make up for the missed payments.
Hope i could help!