Managing Your Mortgage In Turbulent Times

Managing Your Mortgage in​ Turbulent Times
In today's uncertain mortgage climate it's difficult to​ predict what will happen tomorrow .​
More than 130 major mortgage lenders have closed their doors since late 2018,​ and with property prices and demand for exotic home loans both down,​ that number is​ sure to​ increase before the​ market improves.
All this uncertainty is​ rattling some homeowners,​ and leading them to​ draw false conclusions which will dramatically impact their lifestyle and long term finances .​
Read on​ to​ discover what these misconceptions are,​ why they are wrong,​ and what you​ should be doing instead.
Refinancing Indecision
Many people who purchased or​ refinanced in​ the​ past few years thought they were getting a​ great deal .​
But many are seeing the​ attractive low introductory rate they received expire and their mortgages reset to​ a​ higher monthly payment .​
In some cases these payments are beyond the​ means of​ the​ homeowner .​
In such situations the​ obvious solution is​ to​ refinance into a​ more stable and still affordable mortgage.
Fears that their new lender will close their doors,​ or​ that their mortgage application will get caught in​ limbo,​ have gripped many people who would otherwise have refinanced .​
Even though they are struggling to​ make their payments and starring foreclosure in​ the​ eye,​ these homeowners are leery of​ refinancing and rocking the​ boat.
But that homeownership boat is​ already being tossed around on​ a​ sea of​ uncertainty,​ and maintaining the​ status quo will not improve anything .​
The solution is​ to​ do thorough research and find a​ reputable and stable lender .​
Check how long the​ lender has been in​ business; find out how many branch offices and employees they have; determine who their underlying investors are; and analyze whether they have independent sources of​ income,​ like consumer banking.
Another good idea is​ to​ work with a​ reputable mortgage broker to​ find you​ a​ new mortgage .​
They often have extensive contacts among the​ various mortgage lenders,​ know who the​ stable lenders are,​ and in​ the​ unlikely event that your first choice can't close your loan they can quickly rematch you​ with an​ alternative one .​
Plus,​ brokers can find you​ competitive deals and save you​ some time and effort.
Failure to​ Pay
Another common mistake homeowners are making today is​ not paying their monthly payments if​ they hear their mortgage lender or​ servicing company has closed their doors .​
This is​ a​ massive mistake,​ because your mortgage contract does not expire just because your lender goes into bankruptcy .​
If they do cease operations one of​ their investors will simply resell your mortgage as​ a​ security to​ a​ competitor .​
Should this happen,​ there might be some short term confusion over where you​ send your payments,​ so be proactive: call up your mortgage lender and check your mail for a​ letter which will provide you​ with the​ answer.
The same principle applies if​ your lender files for bankruptcy protection,​ a​ term which consumers often confuse with straight bankruptcy .​
In this case you​ are also still required to​ make your payments on​ time .​
Make these payments out to​ the​ same company,​ and mail them to​ the​ same company address unless you​ hear otherwise.
Failure to​ keep current with your mortgage payments will push you​ towards foreclosure,​ regardless of​ who ends up servicing your home loan .​
And arguing that you​ didn't know you​ were still expected to​ pay won't get you​ any sympathy with your lender or​ mortgage servicer .​
So be alert,​ and don't run the​ risk of​ loosing your home.
Don't allow the​ current turmoil to​ jeopardize your homeownership status .​
Arm yourself with the​ knowledge you​ need to​ protect your home and lifestyle .​
If you​ need to​ refinance do it​ as​ soon as​ possible .​
And keep current on​ your mortgage payments,​ even if​ your lender appears to​ be struggling.

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