Can’t pay your mortgage? There are options

On Behalf of | Aug 18, 2021 | Residential Real Estate Transactions |

Last year was a rough one for a lot of people, and 2021 isn’t shaping up to be much better. If your income hasn’t kept up with your expenses and you’ve fallen behind on your mortgage, you’re definitely not alone.

Now you need to figure out what to do to best preserve your future.

Preserve your options by acting early

Generally speaking, the faster you act to remedy the situation, the more options you’ll have. Ask your lender for mortgage assistance. Lenders typically aren’t eager to foreclose. They’d much rather have you pay your loan than assume responsibility for your property. Here are some of your potential options for dealing with your mortgage:

  • Loan modification: If your income has been reduced but you can still afford to pay some part of your mortgage each month, the lender may be willing to modify your loan so that it’s affordable again.
  • Loan forbearance: Maybe you just need a short break in your payments to get back on your financial feet. If so, your lender may be willing to suspend your payments for a few months by tacking them onto the end of your mortgage.
  • Short sale agreement: If you know you’re unlikely to be able to afford your monthly payments again, a short sale may help you get out of your mortgage. Essentially, this allows you to sell the property for less than you owe.
  • Deed in lieu of foreclosure: This allows you to default on the mortgage without being put through the rigors of a foreclosure proceeding. It’s often a final resort, but it generally preserves your dignity and privacy better than a foreclosure.

None of these options are entirely without risk, but they can all minimize your emotional and financial distress during a troubled time. If you’re struggling with your mortgage, learn more about your strategic default options today.