|  Once you’ve qualified for a mortgage and made your down payment, you’ll have to make regular payments to pay off your loan. Just make sure you meet each payment, or you may owe extra money in late fees or penalty charges. And if you fall behind on too many payments, you run the risk of foreclosure. That means your lender has the right to repossess the property and sell it to recover what is still due. If that happens, you may lose all the money you’ve invested. Plus, you’ll be without a place to live, and your credit history will be seriously damaged.
The key is not to wait if you find yourself having trouble making payments. As soon as you realize you may fall behind, you should arrange a meeting with the provider to explore your options. Fortunately, foreclosure isn’t attractive to lenders either. It takes time and costs money. And they would much rather work with you to stretch out your payment schedule or find some other way for you to meet your obligations. But you shouldn’t begin to make partial, or reduced, payments until your contract has been officially changed to reflect the new terms. Unauthorized partial payments could be rejected, putting you in default.
Musical lenders
Many lenders sell their loans to other lenders shortly after closing. So don’t be alarmed if you’re instructed to send your payments elsewhere. None of the terms will change. |
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