Can’t Afford a Mortgage Payment? Take these Steps

When you take out a mortgage to purchase a home, you are expected to make the payment in full every month. For some, this is never a problem. Others, however, run into challenges from time to time.

If you find that you are unable to make a mortgage payment, you have two options:

• Run and hide, hoping that you can make up the money in the future
• Contact your lender, explain your situation, and work with them to find a resolution

When you are open and honest with your lender, you may be surprised at how helpful they are.

Once you contact your lender, there are several options to discuss:

• Work out a repayment plan. If you know you are unable to make the payment during a given month, your lender may work out a repayment plan with you, allowing you to make up the missed payment in the future.
• Get a loan modification. Are the terms of your loan making it challenging to pay in full every month? If so, a modification may be just what you are looking for.
• Refinance. This is a step that many people take before they run into financial difficulties. With this, you may be able to lower your interest rate as well as your monthly payment. It may add years to your term, but you are putting yourself in better position to meet your monthly obligation.

Are you underwater on your loan? If you owe more than your home is worth, you may want to consider a short sale. On the other hand, if your home is worth more than you owe, selling and moving into something more affordable could be your best option.

There is nothing worse than the thought of losing your home to foreclosure. As scary as this sounds, don’t automatically assume this is going to happen if you are unable to make a mortgage payment. Instead, contact your lender to discuss your many options.