What Happens When You Can’t Pay Your Mortgage
Losing your job is extremely tough. We truly feel for you. Despite your loss of work, you still need to make on-time payments to your mortgage company. They expect their money each month, and you cannot be late. If you’re late, there are often fees, and you risk losing your home.
Thankfully, most mortgage companies are willing to work with you. After all, if they don’t, they don’t receive your money. Their business relies on your cash.
Work Out a Payment Plan
If you want to keep your home but cannot make the monthly mortgage payments on time, consider working out a new payment plan with the mortgage company. Inform their office about your job loss or reduced work hours and negotiate a better plan to fit your new income.
In some cases, a lending company may accept partial payments until you get back on your feet. Some even have programs to suspend mortgage payments altogether for a short while.
Sell Your Home
If you’re not particularly attached to your home, you may consider downsizing. You have the option to sell your house for cash, repay the mortgage, and then move into an apartment or a smaller home while you find new work. If you’re already well behind on your monthly payments, and your house is due for foreclosure, you’re still not out of luck.
A real estate investor in the area is able to work with the bank or lending company and can buy your house all at the same time. You’ll likely need to repay a good chunk of the mortgage using the proceeds of the sale, but you’ll be out of hot water.