If you are not in a position to make your mortgage payments, do not hide from your creditors. Instead, call them and share your problems with them. By hiring a mortgage company, your work will be quite easier as they will commence your foreclosure proceedings, which can be quite costly but beneficial for you.

Make sure to know your financial condition before contacting your creditor. Determine how much income you are bringing in each month, how much you are spending on bills and where you can cut costs. The mortgage company will help you in putting together this financial analysis for free. The mortgage counselor will also help to negotiate with your creditors. Once you have planned your budget, contact your lender and have an idea what you need. Tell them what your financial situation is and what you can offer them to come out from this situation.

It is better to submit a proposal. This will help in negotiating the loan modification. If you think that your financial problem won’t last long, ask your creditor for forbearance, or postponement of payments, for few months until your finances recover.

If you have an adjustable rate mortgage that reset and you cannot pay the higher monthly payments, request a loan modification from the creditor. For loan mortgage modification you will be asked to submit your complete financial history, specifying your income and monthly expenses. It is always preferred that you have something to justify a loan modification, if they change your mortgage to a fixed-rate mortgage. Try to convince them that you can comfortably pay a fixed rate mortgage and you are more likely to get a modification.