There are many reasons homeowners face difficulty in making mortgage payments: unexpected expenses, loss of overtime, unemployment, overspending, illness/injury, disability, death, marriage, childrearing, divorce, education, and relocation.
Whatever the reason, it is important to be informed of all available options and to act quickly.
Early Delinquency Intervention (EDI) involves addressing the financial crisis in the earliest possible stages in order to maximize relief available from the lender. For EDI to be effective, it must include a clear Statement of the Problem, a thorough Personal Financial Assessment, and a realistic Plan of Action, spelling out for the lender the relief you are seeking and how you plan to meet your current and future financial obligations.
You may have the misconception that the lender wants to take your home back through foreclosure. This is not true. The vast majority of lenders are only interested in seeing that payments are made each month as agreed in the mortgage terms. As a general rule, lenders only begin foreclosure when all else fails. They look for ways to assist you when you are having financial difficulty, but their ability to help declines with each missed payment. Therefore, it is extremely important to address the crisis as soon as it occurs and to keep the lender informed at all times.