What are Your Options if You’re Behind on Your Mortgage?
Sometimes homeowners find themselves in situations that have caused them to fall behind on their mortgage. Things such as an unexpected job loss or medical emergency are just a couple of the issues that can lead to financial difficulties. It’s important that you know your options should you find it difficult to make ends meet. If you do find yourself falling behind on your mortgage payment, here are three tips.
1. Meet with your mortgage lender
When many people fall behind on their debt, it’s very common to act as if the problem doesn’t exist. Ignoring phone calls, bill statements, emails and creditors is a mistake. One should never run from their bills. Rather, the first step to clearing any debt is to acknowledge the debt itself. By contacting your mortgage lender, you’re demonstrating your seriousness about catching up on your payments.
Your mortgage lender can offer several options. First, the lender might be able to work out a loan modification or a more affordable repayment plan. They can also potentially reduce your mortgage payment temporarily until your financial situation improves. Furthermore, they might be able to defer payments, altering the loan so that the principal is at the back end of the loan.
Moreover, your lender can potentially save you money on interest by renegotiating your interest rate. In some cases, lenders have forgiven principal payments altogether.
2. Contact a government agency
If your lender decides not to work with you, there are some free resources. If your loan is an FHA loan, reach out to their National Servicing Center. They will inform you of all current programs available to you through the federal government. If your loan is a conventional loan, contact the US Department of Housing and Urban Development. If you have a VA loan, contact the Department of Veteran Affairs.
Also, your state does have foreclosure avoidance counselors that can assist you. All these services are available at no cost, and could potentially help you work out repayment plans that your lender may not have told you about.
3. Look out for foreclosure scams
Be wary of organizations that offer quick-fix solutions. These companies could be trying to take advantage of your financial problem, acting as foreclosure specialists, who can save your home for a fee. They may charge as much as several thousand dollars to do so. You should know that there isn’t much that these specialists will be able to do that you can’t do for yourself. Many homeowners have ended up losing their home and large sums of money waiting for these self-pronounced experts to save their homes.
Typically they’ll offer to loan you money so that you can stay in your home. Then, you make your mortgage payments to them. Always contact a lawyer before agreeing to any terms offered by such companies.
If you’ve found yourself in over your head on a mortgage default, you may decide that your best option is to sell your home in the easiest manner possible.
We Buy Ugly Houses will buy your house as-is, with a cash buyout and no hidden fees or commissions. We’ll make it easy for you to move forward as quickly as possible. For a fresh start, contact We Buy Ugly Houses today to learn more.