Struggling to keep up with your home loan repayments can be extremely stressful. You might fear foreclosure and not know what the future holds for you and your family. Fortunately though, there are actions you can take to help you stay in your home, or at least to minimize the financial damage of having to give it up. Keep reading to discover more about your options.
List your property
You might not want to sell your property, but doing so now before you get any deeper in debt could be beneficial financially and it could save you the stress of waiting for foreclosure. The chances are you’ll need to act quickly, so you may have to take certain steps in order to attract interest in your home. For example, making some basic repairs and renovations, and staging your house carefully before viewings, can make it more appealing to potential buyers and help you to agree a sale in a shorter period of time.
Approach a cash buyer
If you can’t wait around to attract a buyer on the open market, or you simply don’t have the resources you need to make any necessary repairs and improvements, another option is to approach a cash buyer. Specialist companies such as Fast Sale Florida (which operates across Florida in areas including Vero Beach, Miami and Venice) make instant offers on homes in any condition. If you agree to the terms of the deal, the sale can be completed in as little as just over a week. Taking this route also has the added benefit of meaning you avoid closing costs and realtor commission.
Speak to your lender
Depending on your individual circumstances, you may be able to negotiate an agreement with your lender that gives you a little extra breathing space in terms of your mortgage repayments. There’s no guarantee that your lender will agree to this, but they’re more likely to if you can explain why you’re currently experiencing problems and how your financial situation is likely to improve in the future.
Sometimes, being able to help a borrower keep their home is the best option for a lender, especially during periods when the market may be saturated with foreclosed properties.
Ask if you can refinance
If you’re not already over-extended, you may be able to refinance your home. For example, if you’re scheduled to pay your mortgage off in 10 years, you might be able to make your repayments smaller by extending the term of the loan. However, it’s important to bear in mind that refinancing like this can incur a sizeable fee and you’re likely to pay more in interest over the long term.
Another option, but one that should only be seen as a last resort, is to declare bankruptcy. It’s really important to understand that if you do this, while it might clean the slate and lift the immediate financial burden on you, it will destroy your credit rating and make it difficult to borrow money for a number of years to come. Because of this, it’s essential that you seek reliable advice before you decide to take this step.
When you’re facing difficulties keeping up with your mortgage repayments, you might feel like the situation is out of your control. However, by making sure that you understand your options and by taking decisive action, you may be able to achieve a much better outcome than you expect.