Knowing that you do not have enough money to pay your mortgage can cause great uncertainty. You may experience feelings of embarrassment, fear and guilt.
Despite your valid concerns, the way you respond can help you keep your dignity. Knowing your rights will also help you protect yourself from biases and unethical conduct.
Engage in negotiation
Because of the popular perception that creditors have, you might have forgotten that you can still negotiate with them. According to the State of New Jersey, Department of Community Affairs, the law requires your lender to give at least a 30 days’ notice prior to enforcing a foreclosure. This gives you time to reach out to them and negotiate an alternative outcome.
You might consider sharing some of the reasons why you have not been able to make payments. Suggest an alternative payment plan that you can afford. Consider asking family and friends if they could help you gather enough resources to make at least one payment in the meantime. If your lender counters your offer, you do the same. Persistence might be the only way to keep your home.
Embrace a proactive mindset
Waiting and hoping without taking any action is one of the biggest mistakes you can make when dealing with a looming foreclosure. Embrace a proactive mindset. Immediately contact your lender and learn about your options. If you try to negotiate and it does not work, come up with a list of alternative plans.
Think of creative ways to acquire money for payment. Some ideas include getting a part-time job, selling unneeded personal belongings or suspending cable TV or other amenities until you reclaim your finances. Keeping your emotions in check and responding with precision and dignity might help you keep control of the situation.