Your home is not only your largest asset, but it is also a place to keep your family safe. When we get hit by a financial crisis such as a job loss or a pandemic, it can catch us completely off guard.
Suddenly, our once comfortable situation becomes extremely uncomfortable as we end up struggling to make ends meet. So, if you find yourself in such a situation and you fall behind on your mortgage, don’t put it off. You’ve got to take action immediately so a plan can be made to keep you and your family in your home.
Here we can provide you with some actionable advice to help prevent this, and the steps to take to get you back on track. Once you’re current with your mortgage, you’ll know exactly what to do should it ever happen again.
Try to Maintain Payments
You might be struggling, but there are ways to keep up your payments even when you can’t afford to. You might be able to reschedule or delay your payments until you have the financial ability to pay. If not, show that you’re at least trying to keep up by paying the minimum.
If it comes to it, you may have to borrow from elsewhere to tide you over. However, act fast and don’t bury your head in the sand hoping it’ll blow over.
Contact Your Lender
If you are unable to keep up with the payments, contact your lender to see if you can work out a payment plan or ask for forbearance.
They might be able to freeze payments for a period of time, reduce payments by extending the length of the mortgage, or alter the terms to pay interest only. There are options available, so it’s a good idea to inquire as soon as possible.
Evaluate Your Expenses
Your mortgage won’t be your only expense, but it should definitely take priority over your other outstanding debts. Take a look at where your money is going and if you have other loans or credit cards, contact those lenders to adjust or freeze repayments and focus on paying your mortgage first.
There are charities and counseling services available for those who fall into debt. Not only do they offer you support, but they also provide great advice on how to turn things around. This includes things like creating a budget, how to save, and how to avoid falling behind on your mortgage.
Act Early So You Don’t Fall Behind on Your Mortgage
Try not to worry too much if you do fall behind on your mortgage. While it can be a stressful time, the important thing is to remain calm and act quickly to put things in place. Always speak with your lenders first and try to come to a suitable arrangement.
If your lender is unable to help, you do have other options where you can get further support and guidance on what to do next. Be sure to do the research and create a solid plan to get you out and back on track. This also helps prepare for similar events, so you don’t get caught behind on your payments again.
If you find your lender is not responsive or you still need further advice, contact us here for real estate law guidance.