The holiday season has arrived! And with it comes financial stress. According to a survey conducted by Capital One and The Decision Lab, 77 percent of Americans feel anxious about their current financial situation.
This stress may increase during the winter months. During this time, end of the year fees are due and holiday shopping takes place. It can leave many people wondering if they can even afford to live in their current home.
Consider all your options before you even think about foreclosure and abandoning your house. Take a look at why you should avoid foreclosure, what steps to take, and why you should contact a we buy houses fast Omaha NE company.
Why should you avoid foreclosure?
It is wise for homeowners to resort to foreclosure as a last resort. Aside from you and your family losing their home, going into foreclosure can damage your credit and chances of buying a new home down the road. The consequences of foreclosure are:
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Lowers your credit score
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Makes finding a rental property hard
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Buying a new home becomes challenging
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Causes an emotional toll on everyone
What to do if I can’t pay my mortgage
Contact your lender
The first step you should take when you cannot afford to pay your mortgage is to contact your lender. There should be a number in your monthly statements that you can call or email them. If you cannot find a number, check out their website.
It would be best not to wait until you can no longer make payments. The sooner you contact your lender, the more options you will have. Explain why you can no longer make payments and if this is a permanent or temporary issue.
Forbearance
If your financial situation is only temporary, consider getting a forbearance. This option allows you to put a temporary pause or reduce your monthly payments for a short period. To get a forbearance, you have to contact your lender.
This process does not add penalties to your account. However, it is essential to note that you are still responsible for missed payments. You can repay these payments throughout the years.
Loan modification
What should you do if your financial situation is not temporary? Then, you should consider asking your lender about a loan modification. This process consists of changing the original terms of your current mortgage.
It does not pay off your mortgage or replace it with a new one. Although it can help homeowners avoid foreclosure, this option does affect your credit score. But, the damage is not as bad as filing for foreclosure.
Sell your home for cash
What to do if you can’t pay my mortgage? Sell your house to avoid foreclosure. One of the fastest and hassle-free ways to sell your home is selling it for cash. It gives you cash fast that you can use to pay off your mortgage.
The great thing about this option is that you get more cash. There are no real estate agents involved in the process, so you do not have to pay for commission. This selling option is great to avoid foreclosure and also when you want to sell your home for retirement.
Sell your house to a “we buy houses fast Omaha NE” company!
If you want to avoid foreclosure, sell your house to us! Our team has been helping homeowners in all sorts of financial troubles sell their homes for cash. Request your cash offer here to get started.