Get Out Your Mortgage: Find Out Your Options to Stop Foreclosure
If you are unable to make your monthly mortgage payments, the mortgage company can extend forbearance by agreeing to suspend payments or accept partial payments for a limited period until the bank will be able to start a repayment schedule. Forbearance is a formal written agreement between you and the bank to reduce or suspend monthly payments for a specified period.
Depending on whom you ask you may get a conflicting view on what you should do with your money. Your financial advisor will still tell you to invest your money in the stock market even though the market has crashed in the last year. Why do they do that? Because it’s all they know. You see they went to school for over four years, got significant experience in investing, at have to prove to themselves and the world that they know more than the average investor. Well the stock market crash is changed all of that. You can no longer rely on your financial advisor to make specific financial decisions for you. You are ultimately responsible for your own investments and savings.
Now why would anyone consider that you should invest other than paying off to get out your mortgage? Some reasons include getting a higher rate of return on your money, tax advantages and a whole lot off investment jargon to justify investing every single penny and not diversifying yourself by paying off debts as well. Most people including your financial advisors gets confused about the concept of risk. Investment in the stock market has risk. In a classic example of this, is to look directly at your 401(k) retirement savings statement. If your retirement savings have been slashed by 40% since a year ago that means that investments carries risk. But by all means you should always contribute to a 401 K and retirement savings account. It is the only way to accumulate the liquid cash for retirement. But the stock market crash is taught us one lesson that we should be always diversified in our investment strategy. Paying off your mortgage carries no risk whatsoever. Once the mortgage is fully paid off, it does not matter what the market does, you have no more debt. Paying off your mortgage is at debt-free investment in yourself.
These are two sides to on deciding whether to invest or pay off your mortgage. One is a theoretical discussion about investing your money and getting a greater return on the stock market. This includes all the financial principles and methods to accumulate sufficient wealth in retirement. Another side to investing a paying off your mortgage is what I refer to as the emotional side. Your home is not only an investment. It is it is a place of shelter and dreams for you and your family. Your emotional standard of living is invested in a home. If you lose your home means losing more than a financial asset. If your home is such an emotional investment wouldn’t it make sense to protect the one thing it represents more than a financial investment. Why would you not pay off your home have peace of mind and live a debt free lifestyle? And the best part is you have to take absolutely no risk to protect your family’s future.
If you know trouble is coming with your payments, call your lender before you fall behind. If you don’t know when the lender will re-cast your mortgage or when interest rate adjusts, call and ask. Never wait until you’re behind on the payments to ask for help to get out your mortgage. Mortgage lenders want to keep their loans out of foreclosure as much as you do and will work with you to keep the loan current. You can learn more about keeping your mortgage afloat by registering for a free mortgage guidebook.
Learn more about Obama Mortgage Relief Plan Qualifications.
