Talk to Your Lender
Regardless of whether this is the first time you’ve been late on your mortgage payments or not, the best thing you can do is communicate with your mortgage lender. Don’t hide from your bank; instead, go to them. Explain your situation and see if there’s any way you can avoid late fees until you’re able to get a payment set up. If you don’t have a long history of late payments, your bank will likely work with you to come up with a solution that’s reasonable for all parties involved. Remember that foreclosures are time-consuming, expensive, and difficult for lenders, too; chances are they want to avoid getting to that point almost as much as you do, which is why it’s so important to talk to them.
Of course, communicating with your lender isn’t a magic solution. It’s only a helpful option if this is a first-time occurrence, or if you have a definite date by which you’ll be able to catch up on your payments. If these conditions don’t apply to you, you’ll probably have to consider other options.
Look Into Refinancing
If you’re continuously struggling to make your mortgage payments and have a significant amount of equity built up in your property, you could consider refinancing. This would potentially allow you to make smaller, more manageable monthly payments. Depending on how much is outstanding on your mortgage, how steady your income is, and how much equity you’ve built in the property, you might be better off refinancing.
Something to keep in mind is that refinancing isn’t always the best option, especially if you don’t have a strong credit score. On top of that, refinancing won’t take away the responsibility of a mortgage; it’ll just make shouldering the burden a bit more bearable each month. If your biggest problem is the amount of the monthly payments you’re making and you have a good credit score (or better), this is an option that could be worth looking into.
Sell Your House
If homeownership’s many responsibilities and burdens are wearing you out, it might be worth your time to consider selling your house. This might sound like a huge decision, and it is, but it also offers a few benefits that are worth considering:
- Paying off your mortgage. Depending on the condition of your property and your equity in it, you’ll be able to pay off your outstanding balance and still have money left to give you options for moving forward.
- Consider a short sale. If your home isn’t in the best shape or you don’t have a lot of equity in it, and you’re worried the selling amount won’t cover your loan, you can come to an agreement with your lender to short sell the property. This allows you to pay off your mortgage in one big payment for less than what you’d owe making monthly payments.
Selling does mean having to move, but it could also mean having a great deal of peace of mind–and avoiding the weight of a large mortgage–going forward.
Selling for Cash
If you’re interested in selling and want to get the process going while wasting as little time as possible, it’s a good idea to consider selling your property for cash instead of listing it on the traditional market. This is true for a variety of reasons: first off, traditional listing sales take an average of 3 months to get done in Florida, which can put you at risk of foreclosure if you’re missing enough mortgage payments. When you sell your house to a solid, reliable buyer, you get a fair offer that’s based on real market numbers in as little as one week. That means you don’t have to waste any time worrying about negotiating with buyers, undergoing appraisals and inspections, or signing countless documents. You just get your offer, accept, and get paid on your time.