It is a time taking thing to plan how you can help your grandparents. But your grandparents will require immediate help in a situation when they are not able to afford mortgage payments anymore. To recover them from this pathetic situation, you must point out the exact reason of the problem. The situation might be temporary or permanent. Whatever it may be, you must determine the type of solution you are going to provide them. At any point of time, you must put the stress to find a solution for your grandparents when possible.
Check out the below given steps to help them out. you must engage them also to search for a resolution:
Step 1: Find out the reason for non-payment
You must first ask your grandparents about the reason which is causing their incapability of making monthly installments. You must be very patient, polite and reasonable while communicating with them. You must hear them out totally and let them explain the reason. Don't be harsh, avoid poking them with remarks that can hurt them emotionally. After ending the communication, calculate the amount which they are falling behind along with the number of missed payments. Give your grandparents the proper attention and assure them that you'll sort out the problem along with their cooperation.
Step 2: Check and verify the details
The next thing is to check out and verify the loan number which is assigned in the name of your grandparent’s home loan. Communicate with the lender, explain your relationship with your grandparents and your motive to manage their finances. Get information from the representative about the number of past due payments and ask him the total amount needed to make the mortgage account current. Note down due amounts, late fines and dues. Keep your mind on the given instructions. Follow the exact method the lender is asking to you. It is wise to keep a record of the details like the person’s designation with whom you are speaking with, the date and time of your meeting and confirm all information provided.
Step 3: Review details of mortgage loan
Verify and review the details of the mortgage loan with your grandparents which is given to you by the bank or mortgage lender. Discuss with your grandparents if they have any source of funds like savings, an investment or retirement accounts. If they don’t have these resources, you can give them a fair offer to get help from you. You can make the due payments if you can afford it.
Step 4: Thoroughly analyze the reason for non-payment
Go over the reason which compelled your grandparents to fall behind on mortgage payments. There may be different temporary or permanent situations like sudden illness, accident, an unexpected occasions like marriage of a family member, recent vacation costs or a large expense like a new car or renovation work. These kind of situations may hamper the natural flow of the mortgage payments, in case of your grandparents. You can do one thing, ask for a temporary forbearance period for your grandparents. Call the mortgage company and request them to extend the term. You can ask them for a repayment plan and send them emails with an offer of a partial payment. This will create a goodwill in the lender’s mind that you are willing to pay the dues properly. It will help you to build the good faith between your grandparents and the lender. Consider this decision as an initial step to restore your grandparents’ mortgage payments into the updated status.
Step 5: Look for solutions
Identify the circumstances which can’t be sorted out since this problem might be continuously prohibiting your grandparents from fulfilling their financial obligations. Ask your grandparents if they are willing to sell their property or home. If they are ready, consult a local real estate broker to assume the recent value of the house.
Step 6: Have a talk with the bank
Ask your lending bank to provide assistance if your grandparents are unable to make past due installments. You can suggest your grandparents the option of loan modification. It will reduce the loan interest rate and add delinquent principal at the end of the home loan. Explain the facilities of the mortgage relief programs your lender can offer to your grandparents. Encourage them to choose the best possible offers and avoid falling in the trap of foreclosure.