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Getting Out of a Mortgage When You Can’t Pay Up

Getting Out of a Mortgage When You Can’t Pay Up

Often times, people buy a house with a mortgage because, at the time, they can afford it. However, life-altering events happen, such as job loss and divorce. These events can make you unable to pay your mortgage. So, how do you get out of a mortgage when you can no longer afford it? Here are some tips. 

Contact Your Lender 

You can quickly lose your home to foreclosure when you choose to go into denial instead of doing something about not being able to pay your mortgage. Ignoring foreclosure notices will not make problems go away. As soon as you find that you are unable to pay your mortgage, you should contact your lender to see if you can work something out. 

You should be prepared to discuss why you can’t pay your mortgage and whether the situation is temporary or long-lasting. Believe it or not, helping a borrower keep their house can be beneficial for lenders, so they might want to help you come up with a payment solution. 

READ MORE: How to sell a house during a divorce

 

Refinance

If you aren’t yet stretched to the max, you can refinance your home. If you’re on track to pay off your mortgage in ten years, you refinance your home to possibly make smaller monthly payments over a more extended period of time. 

Refinancing may include fees and end up costing you more in interest over time. 

 

Sell Your Home Fast Fort Lauderdale

One of the most tried and true ways to avoid foreclosure is to simply sell your home. You can list it the traditional way, but the process could take months that you don’t have to complete. If that’s the case, you do have a few options:

 

Real Estate Companies

Real estate companies like My Property Nation help you sell your Fort Lauderdale house fast and for cash, helping you to avoid foreclosure and hits to your credit. You can sell your home as-is no matter the condition and get a fair, all-cash offer. Not only is this great for those facing foreclosure, but it can help put some much-needed money into your pocket in less than 30 days. 

 

Short sale

A short sale is when the bank agrees to let a homeowner sell the home for less than what they owe on the mortgage. Lenders don’t like this because it takes less than what’s actually owed to them, but it is ultimately up to the lender to decide whether a short sale is a viable option. 

 

Deed in Lieu of Foreclosure

Lenders may allow homeowners to sign their deed over to the bank instead of suffering a foreclosure. The borrower will essentially turn the home over to the lender who can sell the house and recoup what they are owed. 

 

It’s important to remember that in lieu of foreclosure and short sale can have tax implications. If you are considering either option, you should consult with an HUD-certified housing counselor and/or a tax professional to determine whether these options are beneficial. 

 

Declare Bankruptcy

Bankruptcy can destroy your credit and make it hard for you to borrow money in the future. A Chapter 13 bankruptcy makes it possible for owners to keep their homes, but only if they have a plan to repay at least some of their debts. 

 

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