(ThySistas.com) Being unable to afford monthly mortgage repayments can be a terrifying prospect for homeowners. But sometimes it can, unfortunately, be unavoidable. You might have recently lost your job or be suffering from a long-term illness. In which case, paying for your mortgage can be difficult. Not being able to afford your home can lead to you losing it altogether, which can put you and your family in a vulnerable position. It can also make it difficult to find another home because your credit score can be greatly affected too. If you’re in a desperate situation and are unsure of what to do, here are some suggestions you should consider.
Extend your repayment time
When you take out a mortgage, you agree to pay back a set amount over a particular time frame. This is something your lender needs to
approve too. By extending, this time, you can get a reduction in your monthly repayments and take advantage of lower interest rates. But remember that this will obviously depend on your age and whether your lender is willing to offer you an extension. If they are able to extend your repayment plan, always ensure you can make the new repayments before committing. You may find that you pay more in the long run, but this could be the quick solution you need.
Apply for a forbearance
A forbearance allows you to reduce your mortgage repayments for a short time. Once this time has passed, you will then be required to pay what you owe. This can be an excellent solutions if your financial issues are only temporary. Another option is to talk to your lender about your difficulties and work out a new repayment plan. This could allow you to pay back the overdue amount over time, rather than all at one. But again, this will depend on your lender. These are both common options used by homeowners who know they will be more financially stable shortly.
Negotiate a short sale
Sometimes in these situations, there is no option but to admit defeat and sell your home. The sale of your home could give you the money you need to pay off your mortgage in full. While this might sound like the ideal solution, it’s not always realistic or possible. This is why many homeowners opt for a short sale instead. Short sales involve selling your property for less than the amount you owe on your mortgage. Both the lender and homeowner need to legally agree to accept less for this to work. While this will still result in you losing your home, it’s often a better alternative than foreclosing. This is because the after effects of a short sale are often less severe, particularly in regards to your credit score.
While these suggestions are worth considering, they will not be suitable for every situation. To get the best result possible, you need to act quickly. It can be easy to bury your head in the sand and pretend nothing is going on. But this will only make matters worse in the long run.
Staff Writer; Gina Jacobs