Owning your own home gives you a type of security that renting doesn’t. However, you also have a new worry concerning the mortgage. If you can’t continue to pay it, for whatever reason, you could be in danger of losing your home. No one ever wants to think about this happening, but it can start to feel all too real when you’re struggling with money. If you’ve lost your job or your income has dropped for another reason, or perhaps your expenses have grown, paying the mortgage each month could be difficult. Before you throw in the towel, there are lots of things you can try to get back on track.
Speak to Your Lender
The first thing you should do if you’re facing financial difficulties is to speak to your lender. This might seem like something you want to avoid. After all, why would you want to tell them you could have trouble making your next payment? But your lender can actually work with you to come up with a solution that could help. Believe it or not, they don’t want to go through the hassle of foreclosure if they can help it. They would rather you pay your mortgage and they can help you do it, if necessary.
Get Advice
If you’re not yet ready to speak to your lender, or they weren’t as helpful as you hoped, there are other places to get advice. You could approach a financial advice charity or speak to a financial advisor about your situation and what options you have. Not only can they offer suggestions on what to do, but you can also get advice regarding your rights and what responsibilities your lender might have toward you. With the right advice, you can put yourself in a better position and make the right decisions.
Try to Reduce Your Costs
There are lots of issues that could make it difficult for you to pay your mortgage. Maybe your income has reduced or your expenses have increased, throwing your budget out of whack. Increasing your income isn’t always something you can do easily, but reducing your costs can often be achieved much faster. Take a look at your expenses and determine if you can cut your costs elsewhere so that you can still pay your mortgage. Budget for necessities and lower the priority of any expenses that aren’t essentials.
Get Ready for Legal Proceedings
Sometimes, no matter what you do, you can end up facing foreclosure. If your lender starts legal proceedings, it still might not be too late to secure an outcome that you’re both happy with. By hiring a foreclosure defense attorney, you can make sure you have someone to represent your needs. They will argue your case and could help you reach a conclusion that allows you to keep your home or at least stand up for your rights so that you can understand the process and the options you have.
It’s frightening when you realize you might not be able to pay your mortgage. However, there are steps you can take to get the right outcome.
