Can’t pay the mortgage? Had bill reminders sent through the post? Although you’re not alone, this does put you in a tricky spot. Let the situation go on for too long and you might just lose your home, so you need to be savvy if you want to avoid foreclosure. Learn how with these tips.
- Don’t ignore letters from your lender and don’t ignore the problem. If you can’t make your mortgage payments, the further behind you get, the more difficult it is to get out of that situation and the more likely it is that you’ll end up losing your home. Seek help as soon as you know there’s a problem.
- Get in touch with your lender. The lender doesn’t want your house. They want their mortgage payments and first and foremost, they want to keep you as a customer. Give them a call and explain to them your problems. They’ll ask how much money you can afford to pay and they’ll walk you through a number of payment options. Remember, there is always help out there – you just need to go and find it.
- Open every single letter you receive from your lender. Although it might be scary, the early letters from the lenders will likely give you a number of options when it comes to paying your mortgage and ignoring these letters means that you’re ignoring opportunities for help.
- Get educated on what might happen if you fail to pay your bills. Read through your mortgage documents and double check the sections on failing to pay the mortgage. Learn about foreclosure in your state as well as the typical time frame so that you know exactly what is likely to happen and when should you not be able to pay your bill.
- Get in touch with a United States Department of Housing and Urban Development counselor. They will be able to put you in touch with financial counselling services state-wide, giving you advice on paying your mortgage and budgeting.
- Set a budget and stick to it. After your mortgage, healthcare is very important. After that, your household bills, water and food shopping should come above everything else. Entertainment packages are an unnecessary expense if you cannot afford to pay your mortgage – as are things like gym memberships and TV packages. Credit card debt and debt on store cards is also of less importance than these bills, so try to pay the minimum repayments if you can just for the mean time. Once you have sorted yourself out again, you can then work at chipping away other debt.
- Think about whether you have any assets, or anything at all, that you can use to raise money. A second car, jewelry, an heirloom or even clothes that you can sell on an auction website – anything that you have that you can sell in order to make money to pay your mortgage and keep a roof over you and your family’s heads is completely worth it.
Come back regularly to find out more about your options for foreclosure.