Avoiding Florida Mortgage Trouble: 5 Steps

Having Florida mortgage troubles?

You’re certainly not alone. According to data compiled by Equifax, one of America’s three major credit bureaus, mortgage delinquency rates hit an all-time high in the first quarter of 2007.

Nationally, 2.87 percent of all home mortgage loans were in default - a spate of late payments surpassing that of even of the 2001 recession.

But if you feel you’re at risk, there’s no need to worry. There are steps you can take to minimize foreclosures and make sure your credit isn’t badly hurt. Here are five pieces of advice:

1. Make your Florida mortgage payments on time. If you’re going to be late with even one of them, call your home loan lender and let them know. They may be more willing (not to mention able) to work with you if you are honest and proactive about solving your problems from the start.

2. Focus on your budget. In order to really straighten out Florida home mortgage situations, you need to determine your monthly expenses and income. Learn where you can cut back so that you can focus on your payments. There are many mortgage calculator tools available online.

3. Talk to the right person. When you speak with your lender, make sure you are working with the right person - someone who actually has authority to work out a solution. Take detailed notes of each conversation and meeting you have with your Florida mortgage lender.

4. Ask about alternatives. There may be other ways out of foreclosure that you don’t know. See if you can get forbearance, or a request to suspend or temporarily reduce mortgage payments. You’ll need to have documented proof - such as recent pay stubs, bank statements, etc. - that you are trying your best to pay bills.

5. Find out how your credit score will be impacted. If foreclosure really is the only option, ask your Florida mortgage provider how your credit score will be affected, so you know what you’re getting into.

SOURCE: MarketWatch