Talking Points

Here are a few things to consider if you’re already delinquent on your jumbo mortgage—or at risk of missing a payment.

  • Be proactive. If it’s unavoidable for you to miss a mortgage payment, call your lender beforehand. A lender that holds your mortgage in its portfolio will likely have more flexibility than one that sold the loan, but many are willing to assist borrowers when possible—especially when there are extenuating circumstances. 
  • Selling the house and paying off the mortgage if there is sufficient equity; a mortgage modification that offers lower payments or interest rates; or, for more serious delinquencies, a short sale or deed in lieu of foreclosure.
  • Control the credit you can. Even if you’re delinquent on your mortgage, you can still exercise significant control over your use of credit—and ultimately, rebuild your credit score. Make payments on credit cards and other loans on time, and keep your credit utilization rate down by using no more than 30 percent of your available credit, which shows you’re using credit responsibly. 
  • Consider credit counseling. Borrowers who can’t create a budget or have trouble sticking to one might benefit from credit counseling. The National Foundation for Credit Counseling has a directory of accredited firms.