If you are in a situation where you cannot afford your mortgage, there are a few options you can do. You can try to keep your home through options provided by your lender. You could also figure out how to get out of a mortgage.
Contact the Lender
The earlier you contact your lender, the more options you have. It is better for the lender if you are able to keep your home. You will have to discuss whether this issue is temporary as well as your income details. The Consumer Financial Protection Bureau is also a great resource for getting in contact with a housing counselor to discuss what your options are.
Your lender may offer you two choices. One is refinancing. If you are able to refinance, this means you could extend the amortization of your loan which means smaller payments. However, refinancing means paying expensive fees because you are breaking the mortgage contract you have now. You will also be paying more interest over time.
Another option your lender may offer you is loan modification. A lender may temporarily or permanently change the mortgage rate, monthly payments, and/or term. If you want a loan modification, you have to prove to the lender that you are experiencing great financial hardship.
Get Rid of the Home
Once you realize you absolutely cannot keep your home, the next step is to get rid of it. If you are trying to avoid foreclosure, one option is a short sale. Your bank has to agree to let you sell the home for less than what you owe on the mortgage. This option may cause less damage to your credit score than foreclosure if it is not reported to credit reporting agencies.
Another option is deed in lieu of foreclosure. This when a homeowner is allowed to sign over the deed of the home to the bank so the bank can sell it and get back what they are owed. Seek a HUD housing counselor and a tax professional as both the short sale and the deed in lieu of foreclosure may involve tax implications.
You can also try selling a house fast for cash. You can pick a we buy houses company such as We Buy Cash OKC to get out of your mortgage. It is important to research a We Buy Houses company before enlisting their help. Some companies are not genuine. However, with the right company, this can be a great way how to get out of a mortgage. They have many great offers available for you to choose from. Even if your house is not in good shape, they can find a buyer for you. All the marketing that is needed to sell your home will be handled by the We Buy Houses OKC . They will handle the photography. They also know the market trends for you to get a good price for your home. The company will cover all the processes for selling a house fast for cash. You also get the final say on which offer to accept.
There is Always a Solution
When dealing with a mortgage you cannot afford, you can avoid heartache. Simply take responsibility. Contact your lender as soon as possible. They may give you options for keeping your home. If you cannot keep it, there are options on how to get rid of it. The important thing is not to wait.