Mortgage Payments

What to do if you can't pay your Mortgage

Are you behind on your mortgage or feel that you will fall behind soon? If so, take action now. Facing the problem quickly and knowledgeably will help you turn a negative situation into a positive one. Here are important steps to take to address your situation:

1. Don't ignore the problem

The further behind you become, the harder it will be to reinstate your loan and the more likely that you will lose your house and experience future credit problems.

2. Contact your lender as soon as you realize you may have a problem

If your mortgage is with Pacific Postal Credit Union, call us at 800.696.6009 and ask to speak to our Lending department.

Make sure you have the following documents and information ready before calling:

  • Your loan account number
  • A brief explanation of your circumstances
  • Recent income documents such as Pay stubs and Benefit Statements from Social Security, Disability, Unemployment, Retirement, or Public Assistance. If you are Self-employed, have your tax returns or a Year-to-date Profit and Loss Statement available for reference.
  • List of household expenses

3. Talk to a HUD-approved Housing Counseling Agency

Call 800.569.4287 and arrange an appointment with a HUD-approved counselor in your area. A counselor will help you assess your financial situation, determine what options are available, and help you negotiate with your lender. They will also have information on services, resources, and programs in your local area that can provide you with additional financial, legal, medical or other assistance.

4. Manage your debts with the help of financial counseling

In addition to speaking with your lender, contact a nonprofit consumer credit counseling agency, that specializes in providing help in restructuring credit payments. A counselor can assess your current financial situation, suggest possible budgetary adjustments, and discuss options for your mortgage and how to approach your lender.

5. Avoid foreclosure prevention companies

These companies will charge you a hefty fee for information and services that your lender or a HUD-approved housing counselor will provide free.

6. Don't lose your house to foreclosure recovery scams

If anyone claims they can stop your foreclosure immediately if you sign a document appointing them to act on your behalf, you may well be signing over the title to your property! Never sign a legal document without reading and understanding all the terms and obtaining professional advice from an attorney, a trusted real estate professional, or a HUD-approved housing counselor.

Sources: US Department of Housing and Urban Development (HUD); BALANCE Financial Fitness