If someone is struggling with monthly mortgage payments, what should they do first?

Study for the FDIC AIDT Ready-To-Work (RTW) Money Smart Exam. Practice with multiple-choice questions, each with hints and explanations. Prepare for your assessment!

Reaching out to the lender is the most proactive and constructive first step for anyone facing challenges with mortgage payments. By contacting the lender, the individual can discuss their situation openly and explore available options for assistance, such as loan modifications, payment plans, or forbearance. Many lenders have programs designed to help borrowers in financial distress, and initiating this conversation can lead to a tailored solution to keep them on track with their mortgage.

This approach demonstrates responsibility and will provide the borrower with valuable insights into their financial options, which can mitigate the negative impact of missed payments. Establishing a plan with the lender can lead to a more manageable repayment structure while also preserving the homeowner's credit score and avoiding potential foreclosure.

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