Nobody wants to think about the possibility of being unable to pay their mortgage. But it is always better to be prepared for the worst-case scenario just in case the unimaginable happens.
Here’s what happens if you can’t make your mortgage payment.
Try to Scrape Together the Money
Now, if it’s at all possible, you should try and make the payment. You should prioritize it over almost everything else, giving it equal priority to your basic necessities. If you can pull the money from a savings account or other such fund, now would be the time to do so.
If you still have some time before the mortgage is due you can also try and earn some extra money to make the payment. Scrimp and save as much as you can throughout the month. Failing to make the payment can have disastrous consequences.
Talk With Your Lender
You need to know what options are available to you in this situation. Every lender is different and has different policies in place, but you usually should have a few viable pathways in front of you. Talking to your lender can usually allow you to work out a deal that lets you stay in your home–which is especially good if you’re trying to pay off a mortgage while raising a family. The lender will want certain information from you.
You will need to give a concrete reason as to why you cannot pay, as well as provide personal information about your finances. They will want to know whether or not the issue in question is something long-lasting or short-lived.
Consider Your Options Carefully
There are a few avenues you can take if it comes to it. First of all, make sure you know where you and your family can go in the worst-case scenario. Start looking into local places to rent. You also might need to think about other ways to pay for basic necessities, such as visiting food kitchens or applying for food stamps. When it comes to the lender, you will usually be able to discuss loss mitigation programs, refinancing, loan modifications, short-selling your home, and more.
Nobody wants to think about losing their home. But if you don’t prepare for the unexpected, the results of such an emergency can be quite serious. It’s always better to have a prevention and reaction plan in place instead of plowing forward recklessly.
Did you enjoy reading this article? Here’s more to read. 10 Things You Should Do After You Sell Your Home