If you get to a place where you’re behind on your mortgage bills, you’re not alone. Across the entire country, one in every 27 mortgages is in default. If you’ve found yourself facing foreclosure, you may have more options than you realize.
The first step is calling your mortgage lender as soon as you know you’ll not be able to make a mortgage payment. Let them know why you’re unable to make the payment and whether this is a temporary or permanent problem. If it’s a permanent problem, you have the following options to consider.
Modify Your Mortgage Loan
Your lender may modify the terms on your loan to give you a more affordable monthly payment. The downside is this could extend the number of years that you must continue paying the mortgage and cost you a lot of money over the long run. If you go this route, only agree to the terms if you know for sure you can afford the new payment amount.
Repayment Plan
Your lender may offer a structured repayment schedule that allows you to get caught up over a specific period of time. Before accepting this option, make sure you can actually pay more money every month to get current. These plans increase your monthly payments and do not reduce the total amount you owe.
Forbearance
If you’ve suffered a temporary hardship like a job loss, natural disaster, or illness, forbearance can provide temporary relief. You’ll be allowed to temporarily make lower mortgage payments or even skip several months. If you’re suffering from one of these types of hardships, forbearance is a good solution.
Short Sale
A “short sale” occurs when you sell your house for less than the amount you owe on your mortgage. After this type of sale, the lender may or may not be able to enforce your obligation under your mortgage for what is still owed. Before you agree to a short sale, ask your lender to agree in writing to waive any deficiency to protect yourself from future collection attempts.
Deed in Lieu of Foreclosure
A deed-in-lieu of foreclosure means that you sign your house over your lender and walk away to avoid foreclosure. Like a short sale, you need to make sure you won’t be held personally liable for the remainder of the mortgage.
Contact a HUD-Approved Housing Counselor
Before signing any agreement, you might try calling the Department of Housing and Urban Development (HUD). They offer free housing advice to struggling homeowners. A counselor can help you understand your options and even connect you with a government program if you qualify.
Sell Your House for Cash
When you can’t afford your mortgage, the easiest option is often to just move on from the situation by selling your home for cash.
Brisea Properties serves home sellers in Montgomery, TX, and surrounding areas. Not everyone can wait weeks or months to sell their home through the traditional real estate market. And not everyone has the time or resources to ready a home that’s in disrepair and get in selling condition. Whatever your circumstances Brisea Properties is here to help. We can buy your house fast and get you cash in a matter of days.
Learn more about how we can help @ www.briseaproperties.com
.png)
.png)
