They say your home is your castle—a safe space to unwind after a long day at work. If you’re struggling to make your monthly payments, however, then relaxation out of the question. You’re likely worrying about not making your payments on time, losing your home, or falling into serious, draining debt. It’s panic-inducing.
Nearly half of all homeowners will make some form of sacrifice to pay their mortgage on time each month. Some will take a second job. Some will accumulate massive amounts of credit card debt. Everyone stresses over a mortgage payment.
Here are your options.
Speak with Your Lender
A lot of homeowners will lose their property due to foreclosure because they cannot accept that their payments are too much to handle. Never ignore a foreclosure notice.
Instead, call your lender. For a lender, helping a borrower retain his or her home is the best solution possible. It means the monthly payments continue to flow, ensuring that the lender keeps receiving your money. As such, most lenders are happy to work with you in some way. Give them a call and try.
Refinancing your home’s mortgage is surely an option. However, this option is for home buyers who are already at their wit’s end. If you’re on track to fully pay off your mortgage in the next few years, then refinancing can help you lower your monthly payments.
On the other hand, if you’re having trouble making your monthly payments, refinancing may incur hefty fees and cost you more in the long run.
Sell to an Investor
Your third option is to sell to a real estate investor. A local investor has a vested interest in the development of the community. Their goal is to pay you cash for your home, fix the place up, and then resell the property. They make a profit, and you get money in your bank account to repay your mortgage payments and move on with your life.