Falling behind on your mortgage payments is a scary feeling. For many, just one missed payment can make it difficult to get back on track. If you’ve experienced a temporary hardship, or are concerned that you might fall behind on your mortgage payments, it’s important to know that you do still have options.
Talk to Your Lender
The first thing to do if you start to fall behind on your mortgage payments is to talk to your lender. The sooner you get in touch with them, the more likely they are to work with you to offer you options that can help you get back on your feet. Here are a few ways your lender may be able to help you stay out of foreclosure:
- Forbearance — A term we hear a lot with student loans, forbearance is actually applicable to mortgage loans as well. If you’re experiencing a particular short-term hardship, like you recently lost your job, experienced an injury, or had a sickness in the family, your lender may be able to put your loan into forbearance. This temporarily suspends your payments and stops your lender from pursuing foreclosure.
- Repayment Plan — Naturally, the best way to bring your account current is to make a lump sum repayment, where you pay back any of your missed payments. Unfortunately, this isn’t reasonable for everyone. You can also talk to your lender about establishing a more reasonable payment plan that keeps you out of foreclosure, and helps you pay back those payments you missed in a way that’s more manageable.
- Refinance — If you are able to refinance your loan with another lender or lending service, this will bring you current on your payments, helping you avoid foreclosure. The other benefit here is that when you refinance a loan, you have the opportunity to lower your payment, so you can better afford your mortgage in the future.
- Principal Reduction — The last chance you have with your lender is a principal reduction. While these are difficult to come by, they are possible, and they can help you out of a sticky situation. Essentially, a principal reduction is when your lender agrees to lower the principal amount you owe in order to avoid foreclosure. It’s more cost-effective for your lender to lower that principal amount than it is for them to pursue foreclosure, so it’s worth it to talk to your lender if you’re having trouble making your mortgage payments.
If you talk to your lender as soon as you start having trouble making your home payments, there’s a good chance they’ll work with you. Remember, it’s in their best interest to have you pay back as much of your loan as possible. Foreclosure is expensive for the bank and it’s a lot of paperwork, so it’s easier for them to work with you — you just have to talk to them.
How Renewed Homes Can Help
If you’ve fallen behind on mortgage payments, and aren’t getting much help from your lender, you still have options. As a real estate investor, Renewed Homes offers a variety of creative solutions to our clients who have fallen behind on mortgage payments, so they can avoid foreclosure and get their credit back on track. Here’s a look at some of the solutions we offer, depending on where you are in paying off your mortgage.
If Your Mortgage Is Nearly Paid Off
If your mortgage is nearly paid off, you have a variety of options, since you do have quite a bit of equity in your home. The two options we find most useful for our clients are as follows:
Stay In Your Home and Pay Off Debt
If you have equity in your home but are facing foreclosure due to missed mortgage or property tax payments, we can help you keep your home. We’ll cover liens and other debt you might have, giving you the time you need to get back on your feet. You’re free to pay off your debt at a rate you can afford and keep your family home.
Sell for Cash
A cash offer is a great option if you have a lot of equity in your home because in most cases, a majority of that cash will be going right into your pocket. You only need to cover the outstanding portion of your mortgage loan, and the rest goes to you. Add that to the fact that with a cash offer you don’t have to complete any repairs or clean, and it’s a great option for any homeowner who’s ready to move on.
If You Don’t Have Much Equity in Your Home
If you still have quite a bit left to pay back on your mortgage, you may feel like you’re in a pretty bad spot. It’s important to know that you still do have options. At Renewed Homes, we make it a point to offer legitimate, helpful solutions to all of our clients, regardless of how much equity you have in your home. Here are a few ways we can help you get back on top of your mortgage payments:
Build Back Your Credit
Missed mortgage payments and foreclosures can seriously damage your credit. For many, that’s the worst part of the entire process. At Renewed Homes, we’ve helped a number of clients actually build their credit back up. We’ll take over your mortgage, but keep it in your name. As we make the regular payments, your credit will start to rise. We’ll also offer you flexible terms beyond just mortgage help, including a cash offer to help you find a new home, and any extra time you need to find a new place and move on.
Sell Your Home for Cash
If you don’t have much equity in your home, you can still move on in a more traditional as-is or short sale for cash. Here at Renewed Homes, we’ll work to make a fair offer that gets you out from under your home, and away from the potential of foreclosure. Then, you’re free to move on, with a bit of cash in your pocket to help you start fresh.
If you feel like you’re unable to make your mortgage payments, or you’re worried that you’ve fallen too far behind to avoid foreclosure, consider giving Renewed Homes a call. We take pride in offering our clients creative financial solutions that get you back on track. Whether staying in your home and paying off debt, building back your credit, or selling your home for cash is right for you, we’ll work to find the solution that best fits your situation. Give us a call at 269-362-0931 or contact us online today to see how we can help.