Your Top 3 Options When You Fall Behind on Your Mortgage
Nobody wants to be behind on their mortgage. But life happens. Whether it’s an unexpected layoff or job loss, a costly medical problem, or mounting debt, falling behind can happen to any of us—and it happens quickly. Before you know it, you could be sitting months behind on your mortgage payments.
When you reach this point, your first instinct may be to ignore the situation and hope it goes away. It’s hard to face these kinds of difficulties head-on, but it’s imperative that you do, lest you land yourself in an even worse situation. Defaulting on your mortgage could result in foreclosure, which can have a disastrous effect on your credit that will impact you for years to come.
Thankfully, you have options, including calling our team to sell your house for cash. If you’re behind on your mortgage, the following three options can help you remedy the situation before it becomes a more serious problem.
1. Meet With Your Lender
The sooner you inform your lender about your financial woes, the better. Foreclosure is a long and messy process, and most lenders are keen to avoid it. As long as you communicate with them clearly up-front, many will be willing to extend you the courtesy of working with you on keeping your home.
Your lender may offer you a payment plan that tacks a small amount on to each month’s payment to satisfy past-due amounts. They may be able to offer you a few months forbearance while you get your affairs in order. (This could be especially helpful if you’re only temporarily out of work.)
Alternatively, they may help you refinance, which can give you a bit of breathing room. Be aware, however, that this may mean lengthening your contract terms and increasing the total amount you’ll pay over the life of the loan.
2. Declare Bankruptcy
The “b” word can feel like such a dirty word, we know. But sometimes, filing for bankruptcy and giving yourself a fresh start is the best possible option. In addition, if you decide to file earlier rather than later, you can save yourself a lot of the headache.
Filing Chapter 13 has the power to stop foreclosure in its tracks, as it’s very difficult to send collections after someone in the process of bankruptcy. (This kind of collection takes special permission from the court.) The major downside to this option is the massive damage to your credit, as a bankruptcy stays on your credit report for a whopping 10 years.
3. Sell to a Cash Buyer
If you’ve found yourself in over your head on a mortgage default, you may decide that your best option is to sell your home in the easiest manner possible. You may not have the luxury of taking time to establish a relationship with a realtor—time is often of the essence in these sorts of difficult and painful situations. If you can’t pay your mortgage, how are you supposed to find the money to make repairs and do staging in order to prepare your house for showing?
It doesn’t have to be so hard! The Buy Guys will buy your house as-is, with a cash buyout and no hidden fees or commissions. We’ll make it easy for you to move forward as quickly as possible. If you are struggling to pay your mortgage for your home in Florida and need help finding a way to get a fresh start today, contact The Buy Guys to learn more about our services and your options.
