Get Out From Under a Late Mortgage
What are my options?
People fall behind on their mortgage for many different reasons, including a death in the family, job loss, or divorce.
You’re not alone. According to the FDIC, 250,000 new families enter foreclosure every three months. Many people never contact their lender for help, either out of embarrassment or because they fear that reaching out for help would cause them to lose their home even quicker.
Option 1: Repayment Plan
This method is best if your financial setback was temporary. This is often the case when the situation was caused by a job loss, once a new job is found everything returns to normal. Who you set up a repayment plan, The payments that were missed are split over the next several months so your payment isn’t too high.
Option 2: Reinstatement and Forbearance
Reinstatement and forbearance is when you work it out so your lending company stops payments due for a set amount of time. When the set time period is over, the entire lump sum of all missed payments must be paid. This is not. good option for most people, but may make sense if you are expecting a large sum in the near future.
Option 3: Mortgage Modification
Sometimes your lender will agree to modify the terms of your existing mortgage. In this case, you’ll either be given a better interest rate or the lender will extend the length of your mortgage in order to lower your overall monthly payment.
Option 4: Refinancing
If your lender isn’t willing to adjust the terms of your current mortgage, refinancing might be your best bet. When you refinance, you take out a new loan – one that ends up in a more suitable monthly payment – and use the proceeds to pay off your existing mortgage
Option 5: Sell The Home
Selling the home is an option many homeowners who have defaulted on their loan don’t know much about. One sure way to avoid foreclosure is to sell the home and make enough to pay back the missed mortgage payments along with any accrued fees. The house will no longer be yours, but you avoid any further damage to your credit and get the chance to start fresh.
If you decide to sell, tell your lender you plan to sell the property to pay off the mortgage. Work with your lender to postpone a foreclosure of short sale while you sell the house.
Up until the home is sold at auction, you can rescue your home by selling it and paying the lender everything you owe, including back payments and penalties.
Avoid Foreclosure at All Costs!
The threat of foreclosure is scary, and some people believe it’s easier to just walk away from the home rather than going through the process. This is one of the worst things you can do.
A foreclosure will negatively impact your credit score. This will make it difficult to obtain rental housing, credit cards, and loans. The foreclosure will remain on your credit report for seven years, and has the potential to affect your life the entire time.
There are few situations tougher than getting behind on a home loan. Not only can it potentially ruin your credit, you have to deal with constant calls from the mortgage lender asking when your delinquent payments will be made. The good news is that you don’t have to file bankruptcy, endure foreclosure or let the lender sell your home at a short sale.
Integrity First Home Buyers can help! We will buy your home for cash, so you can be relieved of your remaining mortgage debt.
- Fast, fair cash-offer for your home
- No repairs needed; we buy homes as-is
- Potential relocation cash assistance
You don’t have to be bullied by the banks anymore. Watch the video below to learn exactly how it all works, then contact us to get started!
Watch to Learn How We Can Help