Are You Behind on House Payments?
Often we wonder what we are to do if we fall behind on house payments. How do we get pointy side up again?
If you have recently fallen behind on mortgage payments, hopefully by reading this, you will have some good ideas on how to deal with the situation. This is not legal advice, and before taking any financial action, it is always a good idea to talk to a Lawyer. Over the past 18 years of talking to sellers who are behind on payments, we have come across many situations, solved many situations, and have gained some insight on how sellers can successfully deal with their lenders.
Here are some reasons homeowners fall behind on their payments:
- Job loss
- Death in the family
- Health issue
- Bought a second home, and are struggling to make payments on the two properties.
- Took a loan on the house with a higher interest rate, to pay other debts, and now having trouble making payments.
- Friend or family member rented home, and they failed to make payments.
- And the most recent…Pandemic
Regardless of the situation, now is not the time to hide. If a lender does not receive regular payments, they will often call you, send demand letters, and if too many payments are missed, usually three, they will start a foreclosure action. Over the years, of dealing with Lenders, and foreclosure situations, one of the most important things you can do is keep in constant contact with the Lender, or their Lawyer, if they end up appointing one.
This helps them know you are not avoiding them, and keeps them from guessing why you might not be up to date on your payments.
Then, once you have let the Lender know of the situation, you need to take stock of where your finances are at, and figure out if you will be able to get caught up. If you are able to get caught up in a few months, often the mortgage can be reinstated.
In other cases, in some cases, the Lender often won’t renew, even if you get caught up. In this case, you may need to find another lender to replace the current lender. Getting a new lender onboard can be difficult when your payments are behind, because the new lender may not feel confident you will be able to make payments to them.
Another option may be to quickly sell the house. By doing this, you are able to get the Lender their money back, and stop their legal action. This can help prevent damage to your credit, and get rid of the stress of having a lender or their Lawyer constantly harassing you for the payment.
Sometimes, homeowners will put the house on the MLS. In a hot market, this will often work, but in a softer market, this can take too long, and the Bank ends up foreclosing.
That’s where We Buy Houses comes in. We can buy the house quickly, or sometimes take over the mortgage, to help you be rid of the debt, and give you a quick solution, so you can move on with your life, and not have to worry about the debt.
The process is super easy, and a quick call to us, or filling out our online form gives us the info we need to do a quick analysis to see if there there is a way we can buy your home.
Often, even if we can’t buy, we can give you a few ideas on how to deal with the situation, and we have helped problem solve seemingly unsolvable situations.
If you have a home that is behind on payments, or you think now may be a good time to sell, feel free to call us at 780-483-2006, or fill out this online form and we will follow up to see how we can help.