3 Solutions for Homeowners Struggling with their Mortgage
As much as you want to be consistent with paying your mortgage on time, there are certain life situations that just make it difficult for you to do so. These kinds of situations demand your attention and, most of the time, majority of your finances. This causes you to push other responsibilities, like paying your mortgage, to the side for a while.
This is a common scenario that people undergo. Most of the time, we think that we can always get back on track with our bills as soon as our problem is solved, but it can go either way. Based on our previous transactions with a variety of homeowners, we are able to recognize the most common reasons why sellers fall behind on payments:
Scenarios that could lead to falling behind on payments:
Medical Emergencies
If a loved one ends up in the hospital or needs immediate surgical or medical intervention, we have no choice but to choose what’s best for our loved one. This means unexpected hospital or medical bills that may reach to an amount that’s greater than expected. The rest of your bills are forced to the back seat.
Unemployment or Loss of Job
Unemployment is never an easy phase of life. Aside from the emotional toll, you’ll also be experiencing a toll on your finances. How long you stay in this kind of situation will depend on several factors like local economy, your qualifications and so on. If you don’t find a job right away, it’s possible that you might end up depleting your savings.
Divorce
Divorce is one of the hardest processes to go through. You have to deal with your former partner, his or her lawyer, court appearances, property division, and custody battles where children are involved. It could be a long and tedious road before you reach divorce finalization. Most of your attention, emotion and finances will be focused on making everything final as quickly as possible.
Tax Liens
Did you forget to pay your real property, personal property, income or other kinds of taxes? If so, the government will impose a tax lien on your property until you settle the amount that you owe. If you haven’t prepared for this, you may need to concentrate a significant amount of your income to cover the tax liens.
How to Deal with Late Payments:
When any of these situations arise and you do become late with your mortgage payments, there are options available to you. Consider some of these pointers to help you get back on track:
• Talk to your lender to negotiate a repayment plan. It’s better to approach your lender and let them know of your situation.
• Talk to a loan counselor. There are plenty of government agencies who can advice you on what to do when you’re late on your payments.
• Consider selling your house to an investor. Selling your house may add to the difficult decisions you need to make, but you have to consider that your current living situation may prove to be unmanageable. Selling your house quickly to an investor allows you to move up from your current circumstance and start fresh.
But, why sell to an investor and why not an agent or why not sell it directly? The main reason is that you need cash and fast. If you want to find more about the benefits of selling to an investor, read our blog post here. Want to chat with us? Contact us today at 612-758-0071.