Mortgage delinquency rates are defined as the percentage of mortgages that are delinquent. If a home owner has defaulted on his/her mortgage loans, then chances of foreclosure and subsequent sale of the property are bleak. As much as possible, avoid any more delinquencies and stay in the house. But what are the steps to be taken if you are already one of those homeowners who are delinquent? It is no longer difficult now to find a way out.
In case you are still within three quarters of delinquent status, it is time for you to start working on your credit scores. As early as now, you need to establish a track record of prompt payment of debts. Hence, work towards improving on your credit report score. To do so, you need to have a FICO score of at least 680. And this will be your starting point as you try to raise your credit score to the next level.
In case you are mortgage delinquent but have already started to clean up your credit score, it is time for you to avail of the following option: loans with forbearance. If you find yourself unable to pay for your monthly installments for any reason, such as loss of employment or involuntary unemployment, among others, you can avail of these loans. However, there are certain criteria that you need to meet before you apply for these loans. Among them are: be employed, show proof of income, ownership of at least two properties, are at least eighteen years and show evidence of financial hardship.
Another option to help you cope with mortgage delinquency is to seek a bank loans outstanding status report from your local bankers association. Through this, you will know the number of mortgages still on the borrowers' names. The value of these mortgages is usually between one and ten percent. Your local banks association can give you the reports that you need on these mortgages.
If you want to make your home prices drop, you can consider putting your house on sale. If there are a lot of vacant homes in your area, you can use this opportunity to list your property. Aside from lowering your Mortgage repayment delinquencies, you will also get to buy a new home at a lower price than your old one.
When applying for a mortgage, the lender will require you to provide documentary evidence of your monthly income and debts. It is not enough for you to declare that you have a stable job and sufficient funds. This is because most banks and financial institutions closely watch the credit history of the borrowers. If they find out that the borrower has delinquent mortgages or unpaid loans in their name, they will immediately deny the application.
If you have two or more loans that are past due, you are considered to be very high risk. Lenders will probably not grant you a loan even if you are a homeowner with a stable employment. You may also get rejected when applying for a second or third mortgage as well. If you have ten or more loans that are past due, you will definitely have to go through a foreclosure. Even if your assets are protected by insurance policies, you still need to take the necessary actions to pay your delinquencies.
Most homeowners who are facing foreclosure are having problems with both mortgage payments and late payments. However, there are some who just had financial setbacks and are having problems with only one of their loans. In most cases, a borrower who has two or more loans that are past due is considered to be a high-risk borrower. If you have a mortgage that is several months overdue, you should contact your lender and ask about a possible forbearance plan. A forbearance plan will allow you to temporarily stop payment while you work on paying the rest of your mortgage.