Buying a home is one of the biggest investments you will make in your lifetime. The expenses don’t end with your down payment; they are only just getting started. The cost of maintaining your home, taxes, insurance and more adds up quickly.
It’s common for homebuyers to underestimate the financial burden that comes with owning a home. Purchasing a home can strain your financial resources to the breaking point. For some, all it takes is one financial emergency to push them over the edge. One day you are a happy homeowner and the next you are behind on your mortgage payments. What do you do next?
Late mortgage payments can have serious consequences including foreclosure. Foreclosure means that your property will be repossessed by your lending institution. Looking for alternatives to foreclosure? Check out these options for homeowners who are behind on their mortgage payments.
1. Don’t be more than 30 Days Late
For the most part, you will be required to make your mortgage payment by the first of the month, but many lenders will allow you to make a payment until the 15th of the month. After the 15th you may pay a fee and your account could be considered delinquent. One late payment is not the end of the world. First, pay the mortgage payment and the late fee as soon as possible. You may end up taking s hit on your credit score, but if you are less than 30 days late, you will considered to be in default.
2. Explore Forbearance and Repayment Options
If your mortgage becomes delinquent, you may be able to work out an agreement with your lending institution. Some lenders allow buyers to pay a portion of the delinquency plus the regular mortgage payment each month. If you are unable to make payments, you may also be able to get forbearance where you won’t have to make payments during an agreed upon period of time.
3. Seek Payment Assistance
If you become unemployed and are unable to make your payment, there are government programs designed to help you avoid foreclosure. Federal programs like the Home Affordable Unemployment Program, the Emergency Homeowners’ Loan Program, and FHA Special Forbearance can offer temporary mortgage payment assistance if you qualify.
If a loan is past due, the lender might offer to reamortize it by adding the missed payments to the scheduled principal balance so the borrower gets up to date and makes the missed payments in the form of slightly higher monthly payments.
5. Sell to a Real Estate Investor
In many cases a real estate investor can buy your house, regardless of your situation. This is an ideal situation if you anticipate you will not be able to pay your mortgage at some point in the future. Many of the alternatives presume that you will overcome your financial hardship over time. If you don’t foresee your financial improving, then selling to a real estate investor can be a great choice.
White Sands Property Solutions can help you avoid foreclosure if you are struggling to pay your mortgage. We buy houses fast and pay cash. Regardless of the size, location, or condition, White Sands can help.