Distressed Due to Home Mortgage?

Distressed Due to Home Mortgage?


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Are you feeling distressed due to home mortgage?

Are you unable to pay off your debt? I know it’s difficult to keep up with monthly payments with credit bills and other expenses.

I can understand your stressful condition. Staying in debt is becoming a norm in America. From student loan to credit card bills, more than 20% population has some sort of negativity on their credit histories.

Recently, laws regarding foreclosure have changed in the favor of housing community. Now, lenders are required to notify you about the foreclosure process and it is consequences.

This article outlines your options to pay off your mortgage. And we’re not just talking about selling your home.

Distressed Due to Home Mortgage–Read Your Rescue Plan

Calculate Your Exact Loan Amount

The first step is to gather your financial data. Calculate the loan, interest rates, due amount and the number of missed installments. The calculation is easy if you got a fixed-rate mortgage, but the payments will vary with adjustable interest rates.

You’ll need to gather proof of financial hardship. That can be a documentation indicating job loss or a medical treatment slip.

Apply For Home Loan Modification

If you cannot repay the loan, it’s time to apply for loan modification. Either your loan should change to a fixed price or the lender should decrease the interest rates. Keep in mind, this game is not so easy.

Lenders have their interest in mind. You got to configure a situation where the lender loses more by foreclosing your property. There must be a way to pay your loan and your goal is to find that plan.

In a┬ádistressed situation, your best option is to qualify for the HAMP (Home Affordable Modification Program). This program has certain restrictions and qualification guidelines. Make sure to visit this page to learn the latest updates. If eligible, you’ll need to submit a set of financial documents that are listed on the same page. I recommend you to work with an attorney to help you submit the application.

Stopping Foreclosure On Your Home

If you’re distressed due to home mortgage and you cannot qualify for loan modification then your next step is a foreclosure prevention method.

You’ll need to discuss your situation with the lender. Depending on the individual case, you’ll be presented with any of these options:

  • Loan Reinstatement
  • Forbearance
  • New Loan Repayment Plan
  • Bankruptcy
  • Sell Your Home

The lender never asks you to file bankruptcy. They know you’re distressed due to home mortgage, but if you file bankruptcy, the situation goes out of hand. The foreclosure is stopped in its tracks. However, filing bankruptcy takes a severe effect on your credit history. It’ll be almost impossible to buy a new home in the future.

Let’s read about other options.

Foreclosure Prevention SolutionDistressed due to home mortgage

Let’s come up with a loan repayment plan. Life can be tough sometimes, but some financial problems are temporary. You can get a new job in next 6 months. Business problems can be solved in a few months.

In such a situation, you can ask your lender to suspend payments for a given time. This is known as the “forbearance period”. You can start paying the loan after the forbearance period.

The forbearance period will extend the loan duration. You can choose to pay the due amount in one installment as “loan reinstatement”. This will solve the problem. The lenders are happy and you get to keep your home.

If you’re facing a long-term issue then your best option is to sell your home. You can leverage your home equity to finance a new home or to pay your existing debt. In most cases, the property value can pay your mortgage+ you’ll get your money back. Put that money in the saving account. Selling your home doesn’t have any effect on your credit history. It’ll be easier to get a new mortgage in the future.

Ways to Sell Your Home

There are three ways to sell your home:

  1. The traditional route of hiring real estate agents
  2. For Sale By Owner
  3. Selling Your Home For Cash

All three are nice options. Your situation defines the exact solutions. Working with agents cost you 6% commissions, but you can get a nice price provided you have at least 3-6 months to sell your home.

For sale by owner is lucrative, but it will take time and it’ll be almost impossible to find a cash buyer. Now, let’s read the third option which is to sell your home to a real estate solutions company. This has competitive advantages over FSBO. You’ll get a competitive cash offer and the deal is closed quickly.

I am not suggesting you ignore other options. We offer individual solutions to each client and sometimes, it’s best to wait and sell your home with a realtor. But if you cannot wait any longer and you need immediate cash then, your rescue plan is a quick cash offer.

You can click here to get a fair cash price offer. This no-obligation offer will help even if you go with the traditional methods.

Best of luck.

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