The Best Way To React To A Mortgage Emergency

Posted on August 29th, 2018

As of April 2018, the unemployment rate in the U.S. was at 3.9 percent. This may sound like a good number at first, but it’s little comfort to the many people out there who find themselves suddenly without a job for one reason or another. For most people, the largest monthly expense they pay is their mortgage. So, if they find themselves out of work, figuring out how to avoid foreclosure at all costs is probably the first thing on their mind. Here are some things you can do when you find yourself in a mortgage emergency.

Stay Ahead of Mortgage Problems

Always try to stay ahead of any mortgage problems. If you want to be cautious, may make sense to try and prep for periods of no work beforehand with a mortgage-protection insurance program(MPI). MPI programs assist with some or all of your mortgage payment in the event of job loss, disability, or even death. This preemptive action could end up protecting your future.

No MPI? That’s okay. The first thing you need to do is get in contact with your lender and explain the situation. Nothing is guaranteed, but it’s good practice to let the lender know as soon as possible versus waiting for them to find out when you start missing mortgage payments. Remember, foreclosure doesn’t happen instantly. If you talk to your lender, they may be able to provide you with some sort of financial relief like a lower interest rate or reworking the terms of your loan. If you go this route, understand that they are not required to do anything. However, it can be to their advantage to help you if it means they have a better chance of getting the loan paid back.

If You Fall Behind

One thing that you need to understand, as frustrating and stressful as it may be, is that none of these plans guarantee that your home will be saved. Different specificities, from your financial situation to the condition of your home and your lender’s guidelines will all factor in. When your back is up against the wall, it may make more sense to sell the home in question, downsize, and move on.

When it comes to foreclosure, you have a tight timeline to get your house sold. In addition, there are some restrictions on how you can sell the home. Finally, financial troubles may keep you from making repairs and renovations you normally would leading up to a sale, which may turn off some buyers.   

This makes it all the more important that you work with HomeGoIf you find yourself in a mortgage emergency, don’t worry. HomeGo can help you sell your home quickly, at a fair price. We work hard to help you get out from under a mounting mortgage payment and prepare yourself for your future. By helping you sell your home quickly, we help you deal with burdens and mortgage emergencies to help smoothly transition to the next phase of your life.

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