Can’t Pay Your Mortgage? Follow These Simple Steps
No homeowner plans on reaching the point that they can’t afford to make their monthly mortgage payment, but sometimes, due to unexpected situations, it happens. If you are going to be unable to make one of your mortgage payments, it is important to know the right way to handle it. Your lender will notice, and working together is the best way to get it straightened out.
Tell Your Lender
The first step when you realize you aren’t going to be able to send in your monthly payment needs to be to contact your lender. It is natural for homeowners to want to avoid telling their lender out of fear, but it is the necessary first step. Send a letter to your lender explaining your hardship and your inability to pay for the month.
Act Fast
While you may want to wait to see if your situation happens to turn around on its own, it will be in your best interest to notify your lender immediately. Your lender may have alternative options for you, but if you don’t ask you won’t know. The best way to work with your lender is to keep them in the know about what is happening.
Get Educated
There are many homeowners who assume if they are unable to make their mortgage payment it means foreclosure and eviction, but that is not always the case. As soon as you find yourself in hardship you need to seek out loan assistance.
There are programs available that may help you stay in your house. Seeking assistance immediately can help protect you under the rules of dual tracking. Lenders are restricted from working with homeowners on an alternative loan option while also moving them towards foreclosure. This means while you are working with a lender for loan assistance you will not be foreclosed on.
Consider All Options
Some states offer programs that help make mortgage payments for homeowners that are struggling to pay. Not all states participate in these programs, so you will need to find out what applies to your specific situation. One of these programs, Hardest Hit Fund, helps homeowners that are unemployed and trying to find work or homeowners who are upside down on their mortgage.
Be Realistic
There are some times when lenders are willing to work with their homeowners based on the specifics of the situation, but this will not always be the case. It is important that you be open with your lender, but be prepared that they may not be willing to offer an alternative option and foreclosure may be in your future. In situations like this, contact a local real estate investor to get a cash offer on your home.
The thought of foreclosure can be overwhelming and can cause many homeowners to keep quiet about their ability to pay. Lenders are more willing to work with homeowners who are struggling since the housing crash happened, but they can’t help when they don’t know there is a problem.
If you find yourself in a situation where you are unable to cover your monthly mortgage payment, speak to your lender immediately.