With home prices on the rise and many people carrying large amounts of debt, it’s not surprising that some people find themselves in a difficult situation when it comes to making their monthly mortgage payments.
Related: Mortgage rates are increasing. Should I change my investment strategy?
If you find yourself in this situation, you can do a few things to help minimize the damage and protect your credit rating.
Paying your mortgage: Contact your lender
If you’re having trouble making your mortgage payments, you should first contact your lender. Many people are afraid to do this, thinking that the lender will begin foreclosure immediately. However, this is not always the case. Lenders understand that things happen and that sometimes people fall on hard times. They may be willing to work with you to devise a plan that works for both of you.
You may be able to temporarily lower your payments or even put your loan into forbearance, which allows you to make reduced payments or skip payments altogether for some time. This can help you get caught up on your mortgage and avoid defaulting on your loan.
Consider re-financing
No one wants to have to default on their home loan, but it’s important to remember that your credit score will not be impacted as long as you take action before the foreclosure process begins. If you’re struggling to make your payments, you may want to consider refinancing your mortgage.
This can lower your monthly payments and give you some much-needed breathing room. You may also be able to get a longer loan term, which will reduce your payments even further. Be sure to shop around and compare rates before you decide on a new loan.
Related Posts
- LOOKING TO GET CREATIVE WITH MORTGAGE FINANCING TO BUY A LUXURY HOME? THE DETAILS MIGHT SURPRISE YOU
- BUILDING WEALTH AND GETTING A MORTGAGE WHEN YOU ARE SELF-EMPLOYED
- REAL ESTATE INVESTOR: HOW DO I USE RENTAL INCOME TO HELP BUY AN INVESTMENT PROPERTY?
- BEYOND HANDSHAKES: THE NUANCED DANCE OF MEMORABLE NETWORKING
- MISTAKES TO AVOID THE NEXT TIME YOU THROW AN EVENT
Paying your mortgage: Cut down on expenses
While you may not be able to lower your mortgage payments, you can cut back on other expenses to free up some extra cash. Take a close look at your budget and see where you can cut back. You may be surprised how much money you can save by making small changes to your spending habits. Here are a few ideas to get you started:
- Eating out less often
- Downgrading your cable package
- Carpooling or taking public transportation
- Cutting back on unnecessary expenses
These are just a few ideas to help you save money. If you’re struggling to make ends meet, there may be other areas of your budget that you can trim as well.
Look into government programs
Did you know that there are government programs that can help you if you’re struggling to make your mortgage payments? These programs can provide you with assistance in the form of grants or loans. You may also be able to get help from your state or local government.
You can find more information on government assistance programs by searching online or contacting your state’s housing agency. Not only can these programs help you keep your home, but they can also help you get back on track financially.
Speak with a housing counsellor
No matter how much money you make, the job security you have, or how good your credit is, there may be times when it’s tough to make your mortgage payment. Before you get too far behind on payments, speak with a housing counselor. They may be able to help you work out a repayment plan with your lender, or they may have other resources available to help you.
These professionals can help you understand your options and make a plan to get caught up on your mortgage. You can find a housing counselor near you by searching online.
Consider selling your home
It’s hard to think about selling your home, but sometimes it’s the best option. When you’re struggling to make your mortgage payments, it may be time to consider selling your house and using the proceeds to pay off your loan. This can help you avoid foreclosure and damage to your credit score.
If you do decide to sell your home, be sure to work with a real estate agent who has experience in short sales. They can help you sell your home quickly and for the best price possible. While it’s not a decision to be made lightly, selling your home may be the best option if you’re struggling to make your mortgage payments.
It is very important to take action as soon as you realize you’re having trouble making your mortgage payment. The sooner you contact your lender or seek assistance, the better your chances of being able to keep your home. These tips can help you get through a tough financial situation and keep your home. So don’t wait; take action today.
Image up top by Palo Cech/Pexels
I am a 50-something Torontonian who loves everything about my city. It’s been my home, my playground, for my entire life. I went to school here. I met my wife here. I own real estate here. I love writing about the transformation of my city on the world stage, which hasn’t been anything short of dramatic. That continues on, as I write this. I write on the real estate scene. I write on travel and fashion. I like following the world of luxury watches.
But I love writing about cars – check that, luxury cars, a level of superior, engineering sophistication, high performance and style, that transports you not just from one destination to another but also out of whatever you are going through on a particular day, whatever mood you are in, all to another head space. It’s complete and total exhilaration, head to toe.
Check out my stories, and email me direct at mkeast@regardingluxury.com
