Consumers protect your investment!

In these shaky financial environment, every investment must be carefully protected. The biggest investment that most people make is to purchase their own home.

The excitement of owning your own home however can quickly be overshadowed by the surmounting bills faced by the homeowner. Often persons pay the bills but they then decide that they can afford to delay their mortgage payment for a month or two.

At first glance, it might appear to be a good way to save money by not paying your mortgage on time. However, this practice can result in foreclosure, as the bank can make arrangements to sell your home.

Many home owners do not understand that after  three months of non payment they can face additional penalties from the financial institution.

How You Can Prevent Foreclosure

• Make an appointment to speak to a representative from the financial institution.  By opening the lines of communication, an agreement can be reached and a payment plan created that will benefit both parties.
• Make part payments. This is better than facing huge penalties for non-payment of mortgage.
• Ask for a moratorium. Some financial institutions offer a ‘time off’ option for customers who are experiencing a situation that temporarily prevents them from paying their mortgage.
• Try to extend your mortgage term. So if you had a 25-year mortgage, see if you can get it up to 30 or even 50 years depending on the terms. This will reduce the monthly payment requirement.
• Freeze your interest rate. Ask your mortgage provider if it’s possible to freeze or lock-in your interest rate for a period of time.
• Be disciplined!  Make the best use of your disposable income; cut back on utility consumption, buy groceries in bulk, simply make the best of what you have so that you can make ends meet.

On another but related topic, there has been a new rule for sale of foreclosures in Jamaica.

According to the article published in The Gleaner dated June 13, 2014, the new rule states,  ’Banking institutions which have foreclosed on real-estate assets to recover outstanding debt must dispose of the properties within three years, unless granted a further extension by the minister of finance.’

So how are you protecting your investment?

Teri Ann Renee Paisley

Gleaner Online Writer

Tags: foreclosure, mortgage