The federal government has issued incentives for mortgage holders to work with those homeowners who may be behind on their mortgage, to renegotiate. The renegotiating may involve reduction of principal, adjusted payment amounts, and delayed interest.
The problem with this situation, is there is no easy mechanism to handle this sort of problem. It has to be done by the mortgage holder, after being asked by the homeowner for assistance.
This report shows that the mortgage adjustment departments of many of the nations biggest banks, such as Bank of America, and Wells Fargo, are actually hiring a lot of new people to handle the volume. One of the few areas of growth in employment in the country right now.
Another issue with this situation is it frequently just delays the inevitable. If you have lost your job, it may not matter if your mortgage payment is 25% less than it was-”can’t get blood from a turnip” as we say here in the South.
What does this have to do with Millionaire Nurse wannabe’s-well mainly as a cautionary tale. Don’t let your eyes fool your stomach, to keep up the southern sayings-and buy a bigger house than you can afford. Many suggest keeping your mortgage at less than 25% of your salary. Buy the house with a large down payment that gives you equity in case you do have to sell sooner than you intend.
If you are in trouble regarding paying your mortgage, then make sure you call your mortgage holder sooner rather than later, before the money runs out in these federal programs that are helping the banks with these mortgage adjustments.
Develop that emergency fund I keep posting aboutbecause it is so important to give you a cushion when times are tough. Cut out non-essential expenses, keeping your spending to a bare minimum until you decide if you can stay in your home or have to sell or renegotiate.
And remember, if you haven’t signed up for my free ebook, “Emergency Money Resuscitation” you can do so here. As part of my mission to help nurses with their finances, we will also email you a mini-course over the next 6 weeks or so on improving your personal finances,-free too, of course.
Millionaire Nurse Blog
thanks, Hannah