What are your options if you’re experiencing financial hardship and have started missing mortgage payments? The last thing we want is for you to lose your home to foreclosure, so here’s what you can do to get back on the right track.
First, call your lender right away. Whether you’ve already missed several payments or are on the brink of missing future payments, call your lender and take advantage of the financial advice and assistance they offer.
“If you can avoid missing any payments, you want to do so because that will only help you.”
For example, they can issue a three-month forbearance on your mortgage and tack on those three months to the end of your loan. When you’re done paying your loan, you’ll just have three extra payments to make. Some lenders, however, will expect you to pay a lump sum once your forbearance period is over. Regardless, call your lender and see what they can do for you.
If you haven’t missed any payments yet but feel like you will soon, refinancing is another option to consider. If you do a cash-out refinance, for instance, you can get some money out of your home now and cover any future payments that are in doubt.
Lastly, if you have equity in your home (which the majority of homeowners who bought in the last five to 10 years absolutely do), you can sell the home, take that equity, and buy again in a year or so when you’re in a better financial position.
Obviously, if you can avoid missing any payments, you want to do so because that will only help you. Statistics show that at least 32% of all homeowners have partially missed a mortgage payment, so remember that you’re not alone.
If you have questions about this or any real estate topic, don’t hesitate to reach out to me. I’d love to help you.
