12 Options to Consider if You Can’t Pay Your Mortgage

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If you can’t make your mortgage payment, it is likely that you are at the verge of panic. However, remember that you are not alone and that there are solutions out there. Experts like Stephen R Buzzi have come up with 12 different options that you may want to consider.

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Options to Help Pay Your Mortgage

  1. Reinstatement, which means you will pay back everything you owe in one lump sum, including the loan principle, in no more than 24 months. This is unlikely to be possible for you, unless you sell your property to an investor and then rent it, but it can happen.
  2. A repayment plan, whereby you discuss the problem with your lender and come up with a suitable solution.
  3. Loan modification, whereby certain terms and conditions within your mortgage are changed to make it more affordable.
  4. Forbearance, whereby you will pay no or very low payments for a short period of time, before paying that back.
  5. Special forbearance, which is only possible on FHA loan, whereby you can postpone your payments for up to four months.
  6. Deed-in-lieu, whereby you return your property deeds under the agreement that all your obligations are cancelled out. Both parties must agree to this. It means you lose your house, but it won’t impact your credit rating.
  7. Cash sale, whereby you sell your property in order to pay off your loan.
  8. A short sale, whereby you agree to sell for less than owed, but in a quick period of time.
  9. Refinance, whereby you essentially take out a new mortgage in order to pay off the debt. You do need equity in your property for this.

10. Selling “subject to” existing finance, which means that you have to find an investor to purchase your property, who agrees to pay it off at a later date. This means the deeds to the property are transferred to the new buyer, but your name remains on the loan until the new buyer pays it off.

11. Do nothing, which is a terrible idea. Lenders know that some people have difficulties, and they are generally more than happy to come to some sort of arrangement with you. However, if you do nothing and hope things will just go away, you will end up without a home and with terrible credit for the rest of your life.

12. Rent, whereby you rent a piece of your property to someone else, or even all of it if need be, thereby raising the money to pay your mortgage every month.

As you can see, financial difficulties don’t have to mean the end of the world. There are always solutions and options, so long as you are honest with yourself and with your lender. Do also speak to a specialist like Stephen Buzzi to discuss your options. They will be more than happy to peruse over your situation and come up with a plan of action.

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