Properties Jamaica | Jamaica Real Estate Portal

Economic downturn have you worried about being able to pay your mortgage? Foreclosure seemingly breathing down your back? You’re not alone. Hundreds (if not thousands) of homeowners in Jamaica, and millions more around the world are at risk of losing their homes to banks, building societies, credit unions and other mortgage institutions who will foreclose properties with mortgages that are not being properly serviced.

How to prevent foreclosure? Here are some tips.

1. Squeeze that belt and pay what you have – the temptation might be to not make the payment at all if things are tight, however by making even a part-payment, you are at least saving yourself the headache of owing and needing to make two mortgage payments the next month.
2. Talk to an adviser at your lending institution – let them know your situation and see if they can figure out something that will ease your burden even a little.
3. Place a moratorium on your mortgage payment – some financial institutions will allow you to postpone your interest payments for an extended period. During that time, the principal balance will remain the same, and at the end of the extended period you will be required to pay the total outstanding interest for the period.
4. Try to extend your mortgage term – if you were on 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.
5. Discipline yourself – 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.
6. Debt consolidation – if part of the problem of you being unable to meet your mortgage payments is because of other debts (such as school loans or credit card debt), then consider speaking to your mortgage provider or another financial institution about consolidating your debts (in a way that makes sense financially of course).
7. 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. This could be particularly handy here in Jamaica where interest rates are more likely to go up than down.

That’s it … all the best, and we hope that these tips will at least provide some guidance and clarity on preventing your dream home being foreclosed. More from propertiesjamaica.com soon.