What happens if you fall behind on your loan payments for your home?

If you fall behind on your mortgage payments, the lender or current owner of the loan (the bank) is going to start taking steps to collect from you and prevent further losses. Eventually, if you don’t pay the overdue amounts, the bank will likely initiate a foreclosure.

What happens to my equity if my house is repossessed?

As already explained, the main reason why you will not get any money back after your house has been repossessed is because your mortgage lender will sell your house at well under market value. Lenders are not in the property business, which means that all they want is to get their money back and as fast as they can.

What could be a good option available to you if you’re behind on loan payments?

What could be a good option available to you if you are behind on loan payments? A financial institution may offer for you to pay a little now and pay the rest after your next pay day. They are less risky for the financial institution, and usually have a lower interest rate.

What is often the only option for troubled borrowers who are behind on their payments?

What is often the only option for troubled borrowers who are behind on their payments? loan modification.

How many people are behind on their mortgage payments?

Before the pandemic, about one out of every 20 American homeowners had been behind on their mortgage payments at one time or another, according to data from CoreLogic, a financial services firm. But now that corona is slicing into the economy, this number will most certainly rise.

What to do if you are behind on mortgage payments?

If you are behind on mortgage payments and you want to avoid foreclosure, it is best to talk to one of the foreclosure lawyers in Los Angeles at Consumer Action Law Group and schedule a free meeting to discuss your case. We help people file for bankruptcy and sue lenders to save their homes.

How can I avoid making extra principal payments on my mortgage?

If you are making extra principal payments on your mortgage, here’s a simple way to avoid the risk of your bank not applying your payments properly: check your remaining loan balance (sometimes stated as remaining principal balance) before you make an extra principal payment.

Are there any consumer complaints about mortgage principal payments?

Here are some snippets of actual consumer complaints around proper applying of mortgage principal payments from the CFPB complaint database: “Union Home Mortgage Corp Office In OHIO The branch of the institution that I send my payments to DOES NOT KNOW HOW TO ADD ADDITIONAL PRINCIPAL to my payments”