Create a Past Due Payment Letter for it Easily and Efficiently

Past due payment letter for IT

hi I'm Darcel Lobo and I own down law for minority Park and today we're going to talk about what your options are if you are past due on your mortgage it could be your first mortgage maybe it's your second mortgage a HELOC or um there's a few different options as far as what to do if you're past due and how to cure that to keep your home so for most clients who come to us we're helping them because they are maybe facing foreclosure or are otherwise passed doing our mortgage and they want to keep their home they want to save their home and so we help them with those options so when we're first evaluating what the options are we're looking to deal with the lender directly if we can so for some clients maybe they've been trying to talk to the lender they've been calling they've been emailing they've been faxing documents and maybe you've been on that that cycle with them where you send in documents with something still missing then you send that in and well now they need something else and you send that in well the first thing you sent in was is expired now you're on just this you know this wheel of just it never seems to end and every time you call maybe you're getting somebody different and they're not familiar with your file and it could be a very frustrating process to deal with and then you add on top of that this is your home that you want to keep for you and for your family and maybe you're experiencing a financial hardship maybe there's a loss of income maybe someone lost a job maybe there's been some medical expenses maybe you've been off of work for some reason now you're back to work but you're trying to figure out how to get caught back up and that's where we help our clients who are in those situations so there's a few options when we're dealing with a mortgage lender we can look at maybe some kind of forbearance where there's a temporary relief from making payments maybe for six months or 12 months that was pretty commonly done during covid and in most of those scenarios they would just add those missed payments to the back of the loan but it didn't happen for everyone so there's some clients that we have where they are past due and maybe they had a forbearance and now the lender is saying well now you owe us twenty thousand dollars now you owe us thirty thousand for all those missed payments and you're not making progress in working with them another option is some kind of cure payment so maybe you've missed a few payments and we can spread that out over 12 months or 24 months and you can just make small payments towards that but you have to do that in addition to your regular mortgage payment which for some clients that can be just too much they can't afford to make their mortgage payment plus an additional amount to cure the past due another option could be a loan modification that's what we're submitting a full loan modification application with your financials proof income bank statements tax returns and an explanation of what the hardship was and we worked with the lender to renegotiate the terms of your mortgage to get you brought back current and to put the arrays maybe on the back end or maybe it gets reincorporated into a new loan and re-amortize maybe we spread it back out over 30 years or out to 40 years if we need to to get those payments lowered for you um some adjustment city interest rate there's a few different options available with a loan modification um we're trying to help our clients save their homes now for some clients they want to look at a refinance but if you want to pass due on your mortgage currently a refinance is probably not going to be a viable option at this time because you are past due on the mortgage payments right so your credit report is showing non-payments or late payments in your recent payment history and a refinance is credit based so because of that usually the refinance will not work in that scenario with the options I just went over the loan modification the forbearance or the Cure plan none of those are credit based so that's why those options can work even with the recently missed payments but for a refinance that's probably not going to work now sometimes with clients depending on who the lender is or where they are in the time frame of being past due on the mortgage and if they are facing foreclosure sometimes our last resort is filing for bankruptcy and that can sound very scary sometimes for a client but with Chapter 13 Bankruptcy which is what we would file if we're looking to save your home the purpose of that plan is to reorganize your finances and come up with a payment plan that you can afford that will assist you in Saving the home so it's a great option for our clients where maybe we're too far in the time frame to work on the other options directly with the lender and we need to file the bankruptcy to stop the Foreclosure because as soon as we file that bankruptcy case as soon as we have a case number assigned to you by the bankruptcy court which happens instantaneously when I file your bankruptcy there is what's called an automatic stay that goes into place that stops any and all collection activity which includes a foreclosure so if you have a foreclosure date once we file that bankruptcy the Foreclosure is at least postponed and delayed for the bankruptcy filing to happen and It ultimately will be canceled all together once we have your plan approved by the court and the same is true whether you're facing you know a pending lawsuit from a creditor a garnishment any kind of collection activity is stopped as soon as we file that bankruptcy but for a client who is a homeowner and is looking to save their home with the bankruptcy we are filing a Chapter 13 bankruptcy we are not filing chapter seven and if you've been looking online and you know many clients are researching about bankruptcy and how to save their home a Chapter 7 bankruptcy is not going to save your home from foreclosure it will temporarily delay that foreclosure but it is not going to stop it it's not going to save the home and you are at very high risk of the bankruptcy trustee and a chapter 7 case taking the home and sewing it from underneath you so do not file a Chapter 7 bankruptcy if you want to save your home if we're looking at bankruptcy it has to be a chapter 13. so if you are past due on a mortgage even if it's just by a few months or if it's longer than that your past due but you know you want to save your home give us a call and we can help you if you're in Washington State our number is 206-408-8158 or you can visit us online at dallawfirm.com and that'll be listed down below and we are here to help you I've been doing this for gosh since 2008 so 14 15 years now been helping homeowners avoid foreclosure and save their homes as an attorney um but also I used to work for an escrow company I used to be a real estate agent I used to work for a mortgage lender so quite a bit of experience here to help you save your home so give us a call if we can be of help and we look forward to serving you thank you and have a good day