[StBernard] 6 Things You Need To Know When Mortgage Payments Resume

[Westley Annis]

6 Things You Need To Know When Mortgage Payments Resume


TheNewOrleansChannel.com


There are many issues and questions surrounding mortgage payments in the
aftermath of Hurricanes Katrina and Rita. Here are six tips consumer
counselors say may help you out: 

No 1: Experts say keep in mind that there are no simple answers as the
hurricanes were an unprecedented event for everyone. 

No 2: If you received a mortgage deferment, it's important you know the
terms involved. In other words, be sure to find out up front how much you
will owe, and find out if payments will be cumulative at the end of the
deal. 

It's critical that you read the fine print of the deferral agreement and
find out exactly what the terms are. 

No 3: It's also important to know that there are rules and regulations that
limit what mortgage companies can do in terms of making alternative payment
arrangements. 

Most companies are strict and will hold you to the deal. If you are
delinquent, there may be extra fines attached. You'll want to know that too.


No 4: Some experts say it's a good idea to hold on to money set aside for
mortgage payments. Don't spend it hoping you wont have to pay a lump sum.
Instead, consider letting your money gain interest. If you have to pay three
months at once, there will be money left over for you. 

No 5: Remember, original terms of mortgages are pretty much written in
stone. If changes are made, they usually don't change in the consumer's
favor. 

No 6: Finally, don't ever hesitate to ask questions. It will be up to you to
know your responsibilities, and to find out how much you owe when payments
start up. This will help you avoid sticker shock. 

You can try to negotiate payment options with mortgage companies -- each
company is different -- so individual outcome may be different.