If you’re like many homeowners, your mortgage is likely your most significant monthly expense. So, it’s no surprise that falling behind on your mortgage payments can be devastating to your finances and your credit score and overall well-being.
If you’re struggling to make your mortgage payments, it’s important to take action quickly to avoid foreclosure. Fortunately, there are a few things you can do to stay afloat.
Here Are 3 Tips For Avoiding Foreclosure:
#1 Communicate with Your Lender
If you’re having trouble making your mortgage payments, you should first reach out to your lender. Many lenders are willing to work with borrowers who are experiencing financial difficulties.
Repayment Plan & Forbearance
If you explain your situation and ask for help, your lender may be able to offer you a forbearance or repayment plan. These options can make it easier to catch up on your payments and avoid foreclosure. A repayment plan allows you to make up missing payments over time while staying current on your regular installments. Your income must pay both current and past-due sums for the plan to operate. A payback plan may run for three, six, or nine months depending on the scenario.
In a “forbearance agreement,” your lender allows you to make reduced or no mortgage payments for some time. Three to six months of forbearance is normal; however, a longer term may be available depending on the lender’s criteria and your condition. When the forbearance period ends, you’ll have to begin paying the usual amount plus a little extra to make up for the missing installments.
#2 Refinance Your Mortgage
If you’re struggling to make your current mortgage payments, you may be able to lower your payment by refinancing. You’ll take out a new loan with different terms when you refinance – typically, a lower interest rate and/or a longer loan term. This can reduce your monthly payment, making it easier to stay current on your mortgage. Unfortunately, refinancing is complicated if you have low credit due to several late payments or pending foreclosure.
#3 Sell Your Home
If working with your lender isn’t an option, you might want to consider selling your home. Selling a house fast in St. Louis to home buyers can help you pay off your debt and avoid foreclosure. Selling directly to home buyers allows you the freedom of choosing when and where you want to move, instead of being restricted by the timeline of your bank or the market conditions around the sale of your home.
Sell A House Fast In St. Louis
If you’re facing foreclosure, don’t panic. At Velocity Home Buyers, we can help you!
We’re cash home buyers, which means we pay cash and can close on your home quickly – often in as little as 7 days. We’ll also take care of all the repairs and renovations that need to be done, so you don’t have to worry about anything.
You’ll be able to walk away from the sale with enough money to pay off your loan and move on with your life. We specialize in helping homeowners in difficult situations, and we would be happy to help you explore your options!