Falling behind on your mortgage can be dangerous
Paying your mortgage probably accounts for a big chunk of your income. When times are tough, making that payment may seem improbable, but falling behind can be even more disastrous. Here are some tips if you ever find yourself struggling to make your mortgage.
Make a plan to get back on track and stay there
If you find yourself in financial trouble and begin to wonder how you’ll make your next mortgage payment, contact your lender. You may find that you qualify for a loan modification
if you meet certain criteria. But don’t call before you have all your paperwork in order. This includes information about your monthly income, bank accounts, other debts, and tax return documents. Being organized and thorough gives you a better chance of success.
Contact your lender as soon as you experience difficulty paying your mortgage. The longer you wait, the fewer options you may have. Explain your situation in a clear, concise manner and give specifics on why you’re having trouble making payments. You may be granted a loan forbearance
which will temporarily suspend or reduce your payments.
Sell items of value and keep your rentals occupied
If you know you’ll have trouble making the next few payments, it might be a good idea to sell personal items of value. Have a second vehicle? An RV? If it comes down to selling some of your investments versus facing foreclosure, selling items of value should always take precedence.
If you have rental properties, it’s always a good idea to keep advertising for vacancies even when you’re full. Having a list of potential tenants can minimize your vacancy exposure and avoid potential mortgage payment problems.
On the same note, doing background checks on potential tenants and drawing up long-term rental contracts can help avoid frequent turnover and limit mortgage strain.
Paying the mortgage has to be done. If you fall on hard times, don’t hesitate to contact your lender for help. There may be programs that offer reduced payments while you get back on your feet and that’s always better than a foreclosure.
If your mortgage has become to much to bear or you want to sell your home fast, give us a call to get a fast cash offer on your home.