Every month, you find it hard to make ends meet. Last month, you couldn’t even pay your full mortgage. You covered what you could, but it wasn’t what you owed.
This month isn’t looking much better, and you can’t make up what you missed last time. You’re not sure what to do, but you know you won’t be able to pay. Are you going to lose your home?
When you know that you can’t make a mortgage payment, your first step needs to be to reach out to your lender. Let them know that you’re having trouble paying. Many will help you and work out payments that can get you through tough financial times.
Try to be honest about your financial circumstances so the lender can give you the right options. For example, your lender may allow you to skip a payment and just add it on to the end of your mortgage’s term, or they may forgive late fees to help you catch up on missed payments. You may be able to pursue a loan modification to make your mortgage more affordable or set up a repayment plan for your missed payments.
If you won’t be able to keep your home, then you may be able to complete a short sale, assumption or give up your home through a deed-in-lieu of foreclosure.
In some situations, refinancing your home could be helpful, especially if it extends the term of your loan and lowers your payments. If you’re not sure what steps to take, you may want to talk to a financial expert and your attorney about your options.