Sometimes we all have financial setbacks that make it very difficult for us to stay current with our bills. Whether it’s our mortgage, car payments, or our credit cards – sometimes, it can be very difficult to pay these bills on time.
One of the biggest financial concerns that most people have is not being able to stay current with their mortgage. There’s nothing more terrifying than imagining being evicted from your own home. Here are five steps you can do right now in order to get back on track to paying your mortgage.
Talk with Lender
One of the first things you should do immediately in order to get back on track with your mortgage is talk to your lender. Let your lender know your current financial situation. Smaller and more personable lending institutions may show some degree of leniency in order to allow you to stay in your home.
Besides, the eviction process is very expensive for lenders to pursue, so they rather work with you rather than just simply kick you out of your home.
Refinance
Another option you should explore is looking at refinancing your home. Oftentimes, when we initially borrow a loan for our home, we get locked into varying interest rates that can suddenly change and make payments unaffordable. If you are former or current US servicemen, you should definitely look into low VA rates for refinancing your mortgage.
Reach out to Community Development Corporations
Another next step you should take is to talk with a local community development corporation to see if they offer any sort of home ownership counseling services. They may be able to connect you with nonprofit lenders and other institutions that help financially struggling homeowners get current with their mortgages. They will also educate you on
Repayment Plan
If you began the process of reaching out to your lender to communicate to them your current financial situation, ask them if they are willing to offer you some sort of extended repayment plan to help you get current with your mortgage. Again, depending on your payment history, lenders may be willing to work with you because they rather see you stay and pay off your mortgage versus having to waste money going through a lengthy eviction process.
Loan Modification
Since the 2008 Financial Collapse, the Obama Administration has made serious efforts to provide loan modification programs to homeowners who are struggling to pay off their mortgages. Talk with a local housing specialist at a nonprofit organization or a community development corporation to see if you can qualify for any federal-based loan modification program.
Facing difficulties with mortgage payments can be incredibly stressful, but taking proactive steps can help you get back on track and secure your home. Here are five crucial steps to consider.
First, communicate openly with your lender. Explaining your financial situation can lead to leniency or alternative payment arrangements, as lenders often prefer working with you over the costly eviction process.
Second, consider refinancing your mortgage. This can be particularly beneficial if you are eligible for special programs like low VA rates for current or former US servicemen, potentially lowering your monthly payments.
Third, reach out to local community development corporations. These organizations can provide homeownership counseling services and connect you with nonprofit lenders and institutions dedicated to helping struggling homeowners.
Fourth, discuss a repayment plan with your lender. If you have maintained a reasonable payment history, lenders may be willing to extend your repayment period to help you catch up, preferring this over the expenses associated with eviction.
Lastly, explore federal loan modification programs. Since the 2008 financial crisis, initiatives have been put in place to assist homeowners in modifying their loans to more manageable terms. A local housing specialist or nonprofit organization can help you determine your eligibility and navigate the application process.
By taking these steps, you can work towards stabilizing your financial situation and keeping your home secure.
