Owning a home is many people’s dream. However, things don’t always go as planned! Life events can make it hard to keep up with mortgage payments. You may have:
- lost your job
- had unexpected medical bills
- have faced a divorce
Whatever the reason, if you’re struggling to make your mortgage payments, you’re not alone.
Keep Your Home When You Can’t Make Mortgage Payments
The good news is, you have options to help you keep your home. Let’s explore the different ways you can keep your home if you can’t make your mortgage payments.
Loan Modification
A loan modification is a change to your mortgage loan that alters the terms of your mortgage payment plan. Loan modifications can take many forms, such as lowering the interest rate or extending the term of your mortgage. A modification can reduce your monthly payments and help you stay in your home, and it’s one of the most popular ways to keep your home if you can’t make your mortgage payments.
Refinancing
Another option to lower monthly payments: refinancing your mortgage. Refinancing means that you apply for a new mortgage and use it to pay off your existing mortgage. This gives you a more favorable interest rate and new repayment terms that are easier for you to handle.
Forbearance
If you’re facing a short-term financial hardship, forbearance may be an option for you. Forbearance is a temporary pause on your mortgage payments, which gives you time to regain your financial footing. During forbearance, your lender may allow you to make reduced payments or no payments at all, depending on your situation.
Bankruptcy
If you’ve exhausted all other options, filing for bankruptcy may help you save your home. Filing for bankruptcy can help you eliminate unsecured debts, such as medical bills and credit card debt, and make your mortgage payments affordable. However, bankruptcy can have long-term consequences on your credit score, so it should be a last resort.
Dealing with financial hardship can be heartbreaking, but there is hope. If you can’t make your mortgage payments, you have options to help you stay in your home. Loan modifications, refinancing, forbearance, and bankruptcy can all help you avoid foreclosure.
If you’re struggling to make your mortgage payments, don’t hesitate to seek help. Talk to your lender or a housing counselor to explore your options. Keep in mind that the sooner you take action, the better your chances of finding a solution that works for you.
About the Writer: Lizzie Weakley is a freelance writer from Columbus, Ohio. In her free time, she enjoys the outdoors and walks in the park with her husky, Snowball.
