Most of us will contend with financial hardship at some point in our lives. It may be the result of a job loss or layoff, extensive health issues and mounting medical bills, general economic downturn, or one of the myriad other challenges that arise in the course of life. Regardless of how you got there, being in dire straits financially can be an incredibly debilitating experience.

If you own your home but are still making mortgage payments, these moments of financial woe can be especially difficult to navigate. If you’re scraping by every month when the bills come, you may find yourself over a barrel and looking for a way out. There are a few options, including selling your house fast for cash, at your disposal for how to handle a looming mortgage during this time of hardship. 

1. Forbearance

If you find yourself unable to pay your mortgage, it is paramount that you get in touch with your lender right away. Pretending the problem doesn’t exist isn’t going to make it go away! If you speak with them early enough, you will find that they’re much more willing to help you than they will be six months down the road when you’ve gone months without making a payment.

If you know your financial issues are temporary (perhaps you’ll be starting a new job soon, or you’re waiting on a sum of money to come to you through another channel), consider asking for a forbearance. Explain to your lender that you just need a few months to get your affairs in order, and they may give you that grace period and suspend your payments.

2. Refinancing

Maybe you’re not sure how long this financial drought is going to last. In that case, discussing a refinancing of your mortgage with the lender is the next step. If you have good credit and a proven record of being a responsible borrower, your lender should have no problem helping you adjust the terms of your current mortgage arrangement.

If your current loan has a very high interest rate, for instance, refinancing may decrease your payments significantly. Be aware, however, that doing this will extend the life of your loan and—in the end—you will pay more than you originally planned. This option is best for those who are committed to keeping their homes and are okay with spending more time (and more money) in the long run to do so.

3. Loan Modification

Some programs, such as the Home Affordable Modification Program (HAMP), assist people in keeping their homes during times of financial crisis. Not all these government programs are created equal, so make sure to do your homework before considering one as a way out of your situation.

Some programs may appear to offer loan modification but, in fact, provide debt settlement. This means your account will be noted as “settled” (paid for less than originally agreed) which can hurt your credit score.

Additionally, many of the programs have very specific requirements for qualification, meaning that only those homeowners who bought after a certain date or those who owe below a certain amount on their mortgage can participate. There are a small number of people for whom loan modification is a viable option, but it can’t hurt to do some research and see if you’re one of them.

4. Repayment Plans

Much like forbearance, if you speak honestly with your lender about your financial situation and make a good faith effort to repay your debt, they are often willing to work with you. The foreclosure process is tedious and time-consuming for lenders, and most prefer to handle things outside of a courtroom.

If you’ve only fallen behind by a bit, your lender may allow you to make smaller installment payments more frequently to catch up on the past due amount. The sooner you do this, the better, as it will be much harder to convince them that you’re willing and able to pay what you owe if you’ve already amassed months worth of unpaid bills before contacting them.

5. Renting

If your income simply can’t keep up with your mortgage, renting your home may be an ideal way to bridge the gap. If you’re able to rent your home for as much or more than your monthly mortgage payment, you can hold on to your home while you get back on your feet.

You will, of course, need to organize a move (which will likely include downsizing or moving to a less desirable area to save money). You will also be responsible for the upkeep and maintenance of your home while the renters reside there.

In addition, there is always the risk you take as a landlord that your home could be damaged by renters, which will lower its value. You will also still be responsible for paying things like property taxes and homeowners insurance.

6. Selling

If none of the above paths are workable for you, there is always the option to sell your home for cash. If your home is valued at more than what you owe for your mortgage, this can be an easy decision. Selling can help you pay your debt in full and walk away with your good credit intact.

If your home is likely to sell for less than what you owe, however, you would need to work out what is called a “short sale” with your lender. This means they will accept whatever your home sells for as full payment for your debt, regardless of what you actually owe. Keep in mind that doing this will negatively affect your credit, as it will reflect that your account was “settled” rather than “paid in full.”

If you’ve reached the conclusion that you need to sell your home in Florida because you can no longer pay your mortgage, you have options. If you do decide to sell, and you don’t want to deal with months of showings—not to mention extensive realtor fees and commissions—The Buy Guys are here to help. We purchase homes all over Florida, and our team is standing by, ready to help you sell your home quickly and walk away with cash in your pocket.

Home ownership is a life goal for many people. We’re taught from the time we’re young that owning your own home is an achievement and a sign of stability. But sometimes life can deal you a tough hand, putting you in the position of needing to sell your home to stay afloat.

In today’s economy, many people are out of work. Whether you’re the victim of downsizing or company closure, it’s a sad reality that you could lose your source of income overnight and can’t pay the mortgageIf you do, there are a few things to consider before you decide how to move forward:

1. Determine Your Benefits

The first thing you should do after losing your job is head to your local unemployment office. If you qualify for benefits, they could help you string resources together while you look for work. It will likely be significantly less than your previous take-home pay, but something is better than nothing, right?

Many people make the mistake upon losing their job of letting go of their health coverage. While COBRA or buying out-of-pocket coverage can be expensive, you have to consider the expenses you could incur if you become very ill or have a terrible accident during a lapse in coverage.

2. Examine Your Budget

Once you have explored your benefit options and determined what your new income is going to be, it’s time to take a hard look at your budget. Figure out what is non-negotiable and what can be trimmed. You may see, when you examine your finances, that you’re spending more than you realized on things like food and entertainment.

It can be difficult to make spending cuts, especially if you have children, but this is the time for everyone in the family to buckle down and make sacrifices. Even eliminating small things like ordering takeout or going to the movies can help you stretch your money while you hunt for a new full-time gig. 

3. Consider Your Timeline

Unfortunately, no one can predict how long you’ll be out of work. If you do have savings, calculate how long you can safely draw from it without depleting it entirely. You’ll need to do long-term planning and consider any major, unavoidable expenses coming up in the next six to 12 months (homeowner’s insurance, school tuition, taxes, etc.) and how you’ll handle paying for them.

If you don’t have much in the way of savings and the job market in your area is tight, you may find yourself unable to scrape together enough to keep things moving for you and your family while also making mortgage payments. It’s incredibly hard to come to the conclusion that you have to sell your home in order to pay your bills. But if you’re there, realize that you’re not alone.

What Now?

If you think you can budget and hold things together for up to a year, you could go the traditional route and sell your home through a real estate agency. You’ll probably need to do some minor home repairs and deep cleaning. You should also be ready to show your home whenever a buyer wants to see it.

It’s also smart to consider how much profit you need to make from the sale in order to keep your household running, and calculate if you can afford to lose some of the sale price to listing fees and commissions.

You could also choose to handle the sale yourself, if you have the time. But make sure to do your homework on all the necessary paperwork (which will be your responsibility alone) as well as how to handle things like inspections and confirming buyer financing. Don’t get yourself into an even worse situation by taking a big loss because you neglected something important about the sale process.

But what if you don’t have a nest egg to live off of, and you don’t qualify for any benefits? You might be in a very time-sensitive spot and need to sell your house quickly in order to avoid losing everything. In this situation, working with a reputable cash homebuyer company could be the answer.

Here at The Buy Guys, we know that life is unpredictable. Sometimes we have to let go of the things we love in order to preserve our future. We purchase homes all over Florida, and if you need to sell your house after losing your job, we are here to help.

Our knowledgeable experts are ready to take your call and help you sell your home for cash fast so that you can gain some breathing room, some peace of mind, and the flexibility to find a great new job. Give us a call today at 866-381-2591.