Homeownership can be stressful, and if you find you can’t pay your mortgage on time, you’re not alone.
COVID-19 has had a major impact on the world’s economy and many people have found themselves without jobs or with excessive medical bills. The good news is that you have options. Here’s what to do if you can’t pay your mortgage in Texas.
Reach Out to the Lender
The first step you should take if you can’t pay your mortgage is to reach out to your lender. It’s best if you do this before your first missed payment, and in general the earlier you contact them the more options you will have. If you’ve already missed a payment, don’t worry. It’s not too late. Any notice to your lender is better than none.
Call your lender and let them know your situation. They will likely ask questions about your specific situation and how long you expect to be unable to pay your mortgage. When you call, it’s helpful to have the following information on hand:
- Current income and expected future income
- Current expenses
- Mortgage statement
- Documentation of hardship, or whatever caused your situation to change (medical bills, job loss or job change, divorce, etc.)
Form a Plan of Action With the Lender
Many people are afraid they will lose their house if they can’t pay their mortgage payment. This does happen in some situations, but you’ll never lose your house after missing just one payment. Keep in mind that the lender isn’t eager to snatch your house from you, either. Foreclosure isn’t good for either of you, so in most cases they’ll offer you options to help you stay in your home. Here are some of the options your lender might offer you:
- Forbearance – Mortgage forbearance is a way to suspend or reduce your mortgage payment for a set period of time. Forbearance can last longer in some situations, but it’s important to note that whether you are paying a reduced payment or not paying at all, interest will still accrue. Forbearance is not loan forgiveness for the amount you’re not paying. You will make up the amount of the missed payments on a timeline set by the lender.
- Loan Modification – This is a longer-term option your lender might offer you to change the loan terms without refinancing. It might include a lower interest rate, a longer loan term, or a change of loan type. The goal with loan modification is to make the monthly payment an affordable amount and avoid foreclosure.
Oftentimes, working with your lender can help you form a plan to stay in your home. If these options don’t work for you, selling your house might be a better option to help you avoid foreclosure.
Joe Home Buyer Dallas Can Help
If you’re having trouble paying your mortgage in Dallas, Texas, Joe Home Buyer Dallas can help! We buy houses in any condition for cash, and can close any time you choose. Selling to us is quick and easy and will give you the cash you need to pay off your mortgage and not have to stress about missing payments. We buy houses in Dallas, Texas and the surrounding areas. Contact us today for your cash offer!