Useful Information

1. You should always contact your lender whenever you are not going to make your payment on time. Don't be embarrassed. Everyone experiences tough financial circumstances and lenders are aware of this. Explain to your lender what's happening that's keeping you from making your payment. Be prepared to provide evidence of your financial situation. If it's a medical issue that's keeping you from working, bring a note from your doctor. If you've been layed off from work, bring your lay off notification or unemployment compensation notification. Be honest and cooperartive with your lender and the odds are good that they will try to work with you.
2. Talk to your lender about a possible extension. An extension is when you pay the interest due on your loan and in exchange, the lender advances your due date one month. Many lenders have policies about the number of extensions they permit, but often just a single month's reprieve can get you through financial difficulty.
3. See if your lender is willing to refinance your mortgage to reduce your monthly payments. This may result in a higher interest rate, especially if your credit quality has declined, but a lower monthly payment can be the difference between keeping your home and losing it.
4. Ask your lender if they can review your monthly income and expenses and help you find ways to save money. Sometimes, a new set of eyes can provide you with a new perspective. Here's what we have advised members in the past: Reduce or eliminate your cable tv service, stop smoking, eat out less, cancel gym memberships and dvd rental clubs, sell your car and trade down to something less expensive, get a part-time job, eliminate either your land line or your cell phone. None of these is fun, but if you're serious about reducing expenses, your lender will take you seriously.
5. You can contact a HUD approved non-profit counseling agency for assistance. Here are some of the agencies in Maine: