As 2009 comes to an end, many families may be finding themselves in a tight financial situation that could easily be solved by a one month “payment holiday” on their mortgage payments.
However Consumer Credit Counseling Service of Greater Atlanta director of education Mechel Glass said that many lenders may take issue with a request for a “payment holiday,” particularly because of the risk that missing a payment could be the beginning of a road to delinquency for the homeowner.
“Some homeowners call us in December asking if they can take a ”payment holiday,” but we advise them to consider other options,” Glass said. “We know many people are stretching their budgets to pay for gifts and other holiday expenses, but it’s important that they make their mortgage payment and look elsewhere to cut expenses.”
Instead of potentially missing a mortgage payment, the CCCSGA recommends tapping emergency savings accounts or speaking to a nonprofit housing counselor to try and figure out ways to reduce spending.
However, for those who do not have a savings account to fall back on and are low on cash without even factoring in any expenses that may come with the holiday season, a payday loan may be an option to enable a mortgage payment to be made on time and avoid any risk of default or foreclosure.
