This is hotly debated topic with many people arguing either side. One side argues that you should contact your bank while all of your payments are current because banks are flexible and want to keep the money flowing. The other side argues that you should be behind in your payments (whether it be intentionally or unintentionally) so that the bank will understand that you can’t pay and will be more motivated to work with you since they don’t want your home.
What we at Tiered Real Estate have found is that it depends on the bank and even on your personal situation. The best thing that you can do is look at your situation today. Can you pay your mortgage? Will you continue to be able to pay your mortgage (if everything stays the same as it is today)? If you answered ‘no’ to either of these questions then contact your lender (or lenders) right away. Talk to them and let them know your situation and ask them what they want you to do. Usually, they will have you submit a packet of information so they can determine if you are a candidate for assistance or a loan modification of some kind.
Whatever you do, do not do something because you heard a rumor or saw an infomercial on TV. Simply be direct and honest with your lenders and you will have a much better opportunity at something good happening for you.
If you would like to sell your home or if you need assistance getting an estimated value for your home to put on the forms, don’t hesitate to contact one of the great agents or brokers at Tiered Real Estate (866-904-TIERED).