There may come a point when you realize that you can’t afford your next mortgage payment. This is scary on many fronts, especially when you take into consideration the fact that your lender has the legal right to repossess your property.
But before you get too worked up, keep this in mind: there are many steps you can take to get back on track in the future, all without losing your home to foreclosure.
Here is what you should do if you can’t afford to make your next mortgage payment:
- Review your budget: A quick review of your budget will help you better understand your financial circumstances, including any areas where you can make changes. This may be all you need in order to find enough money to make your payment.
- Pay something: Even if you can’t make your mortgage payment in full, consider paying as much as you can. If you’re going to do this, reach out to your lender to explain your situation to them.
- Keep an open line of communication: This is where most people get mixed up. They think it’s better to hide from their lender than it is to stay in touch. Your lender doesn’t want to foreclose on your home. They want to help you get back on track, but they can’t do so until you tell them what’s happening.
- Look into all your options: This goes along with reaching out to your lender. Once you do this, they can explain all your options. For instance, you may be able to request a mortgage modification. Or maybe your lender agrees for you to make up missed payments at the end of your term.
- Refinance your mortgage: Adding more years to your mortgage isn’t something you want to do, but it could be the best way to save your home from foreclosure. By refinancing, you end up with a lower monthly payment. Subsequently, it’s easier to stay current. You may also find that you can take money from the equity of your home to pay for other debts that are dragging you down.
These are the types of steps you should take if you can’t afford your next mortgage payment. The main thing to remember is that your lender is willing to help. You simply need to explain your situation, learn more about your options, and let them guide you.
No matter how good you are with your budget, it doesn’t guarantee that you’ll always be able to make your next mortgage payment. You never know when something could go wrong, such as a job loss or major illness or injury.
Just because things are bad right now doesn’t mean that it’ll remain this way in the future. Do whatever it takes to get back on track with your mortgage payments.
Have you ever faced this situation in the past? How did you recover?