What Should I Do if I Can’t Afford My Current Home Loan?
If you are having trouble paying your current home loan, notify your lender right away. Many lenders can help you get on a repayment plan and keep your home. Your lender may also have other programs available to help prevent foreclosure.
Hope for Those Struggling with Their Current Home Loan
Lenders are often willing to work with borrowers who are struggling to afford their mortgage. However, be sure to reach out early. Any missed payment is reported, damaging your credit. The impact can be minimized by reaching out before you miss a payment.
Temporarily Struggling to Pay Your Mortgage?
If you’re struggling due to temporary life changes (i.e. transition between jobs, etc.), many lenders offer the following options:
- Repayment Plan: Offered on a case-by-case basis by lender
- Forbearance: Payments may be reduced or suspended for a defined period (interest continues to accumulate)
- Refinancing: Refinancing may reduce your monthly payment (if you have good credit)
- Loan Modification: Lender works with you to change the terms of the loan
- Debt Settlement: Lender agrees to accept less than the full amount owed on loan
Each of these will have a different impact on your credit history, but they can save you from losing your home to foreclosure.
Are Your Mortgage Payments Not Feasible?
Falling under serious financial hardship may mean you cannot maintain your mortgage payments. Options available to avoid foreclosure include:
- Selling: Home should be worth more than you owe
- Renting: Rental income should cover the cost of your mortgage payment
- Short Sale: Lender agrees to accept the amount you sell your home for, even if it’s less than you owe
- Deed in Lieu of Foreclosure: Deed to your home is given to lender in exchange for being released from your mortgage
More Time = More Options
The earlier you contact your lender about your financial struggles the more options you have to deal with the circumstances. Lenders want to avoid foreclosure, so see how they can help.
Get In Touch!
If you’re struggling, it’s best to tackle the issue head-on. If you already have a loan with Mortgage Solutions Financial, we can help you get enrolled in a repayment plan or discuss other alternatives to foreclosure. Contact us today to discuss your available options.