How do I fix my credit with late mortgage payments? Colorado Springs, Colorado
What to Consider Next When You’ve Missed a Mortgage Payment
Missing a mortgage payment can be a stressful experience. It can lead to late fees, penalties, collection calls, and even scary demand letters in the mail. However, before you take any drastic actions or stress yourself out, you should know that you’re not alone. Even the best of us can fall behind financially due to changing jobs, unexpected sickness, or simply making mistakes, or even simply overspending. The most important thing to remember is that it’s not a matter of morality. You’re a good person and there is always a solution to your problem.
1. Contact Your Lender
The first thing to do is to contact your lender to let them know about your situation. It might seem intimidating, but they are there to help you. They may have options to offer you a loan modification or a repayment plan. This will help you avoid foreclosure. Communication is key in these situations, and your lender may be more willing to work with you if you’re upfront about your difficulties.
2. Seek Professional Help
If you’re still struggling after speaking with your lender, seeking professional help can be a life-changing option. You can work with seller financing home sale specialists to bring you current on your mortgage payments. They can take over your home loan and help you make your monthly payment each month moving forward. This can be a game-changer, especially if your credit score is suffering due to missed payments.
3. Consider Refinancing
Another option to consider is refinancing your mortgage. Refinancing can help you extend your loan term again out into 30 years, which can decrease your monthly payments. Yet most people don’t qualify any longer, because it requires good credit which may be suffering from a single missed payment. However, it’s important to remember that refinancing comes with its own fees and penalties. So, you need to weigh the pros and cons before making a decision.
4. Cut Your Expenses
Cutting your expenses can be a difficult but useful option to bring yourself current on your mortgage payments. Look for ways to reduce your spending and save some money. You can skip eating out, switch to a cheaper phone plan, or cut out cable TV. These sacrifices may seem small but they can make a big difference in bringing you current on your mortgage payments.
5. Sell Your Home
Selling your home may be your last resort but it can also be a way to relieve yourself of the financial stress caused by your mortgage payments. However, that’s only if you can pay the portion of your mortgage you may owe if it’s still more than you’d receive from selling. Remember, the hidden costs of selling your house almost always include, -2% for vital repairs, or small updates, staging, small decorating, paint touch ups, etc. Add into your selling calculation (of how much money you’ll owe at closing, by selling your property at todays realistic property value), -6%+ for a broker, -2% closing costs, -1% pending property taxes still owed, and -1% for any buyer negotiated repairs! The average selling costs are -10% to -15% of the sale price of your house. On average -12% in selling costs is a responsible estimate to start with. NOTE: it can even be more depending on the condition of your home. You can sell your home to a real estate investor for cash if you had equity. But, if you’re upside down on your home even slightly, cash real estate investors often don’t have any solutions either.
If you’ve made it this far in the article I bet HelpfulHomeBuyer.com has a seller finance based solution that many other homeowners exactly like you have found to be ideal or even ideal. Its often better than facing foreclosure or bankruptcy. The semi-permanent damage of those outcomes leads to every financial check you’ll face in the future when renting a car, to wanting to buy a car, or even getting a new job. Don’t let missed mortgage payments be the end of your story, contact HelpfulHomeBuyer.com and see if there is a seller financing based solution that will help you get back on track.
Missing a mortgage payment can be overwhelming, but there are options available to help you bring yourself current on your payments, and we recommend you seek professional advice from a state or local qualifying agency. Start by contacting your lender, cutting your expenses to save money, and seeking professional help and qualified advice. Refinancing your mortgage or selling your home may also be viable options to consider. If all of those haven’t worked, remember! The most important thing is to take action and not let your monthly mortgage payment continue to be a burden. Contact us at HelpfulHomeBuyer.com if you need any help. We’re here to help you come up with a plan that will work for you and we’ll work to point you in the right direction. Regardless of whether we buy your house or not. We’re simply here to help.