I’m currently dealing with medical and financial hardship and have fallen more than 90 days behind on my mortgage. I have not yet received a foreclosure notice, but I am concerned it could happen soon. The property is in Waller County, Texas.
I’m working on contacting my lender and trying to understand what options might still be available. Any advice or guidance would be greatly appreciated.
1. You didn't specify details of your financial hardship. So, its difficult to be on point with suggestions.
2. Starting with your lender is a good place they may offer some kind of mortgage modification etc that helps you.
3. Keep in mind that whatever you do, make sure it is going to help you LONG TERM! People often make short sighted decisions.
For example, a course of action that forestalls action now so you can stay in the house but where you are likely to end up losing it later feels good today, but you'd likely be better off doing something else.
4. How far along are you in your current mortgage? What is the rate? Depending on the mortgage balance and rate, you might look to simply refinance the loan and stretch out the payments.
For example, if you have been paying on this loan for 20 years, you are almost half way paid off, and if you start with a new 30 year loan the remaining balance is paid over 30 years instead of 10 meaning a lower payment.
5. Obviously you need to still be working and have decent credit for #4. It would have been better to consider this 90 days ago, but the 2nd best time is now.
6. You could take a roommate on to help pay bills. Nobody wants to do it, but its better than losing your home.
7. You could move into a cheaper rental and rent out the house to a good long term tenant to cover the mortgage for a couple years until you are in a better situation to move back.
1. You didn't specify details of your financial hardship. So, its difficult to be on point with suggestions.
2. Starting with your lender is a good place they may offer some kind of mortgage modification etc that helps you.
3. Keep in mind that whatever you do, make sure it is going to help you LONG TERM! People often make short sighted decisions.
For example, a course of action that forestalls action now so you can stay in the house but where you are likely to end up losing it later feels good today, but you'd likely be better off doing something else.
4. How far along are you in your current mortgage? What is the rate? Depending on the mortgage balance and rate, you might look to simply refinance the loan and stretch out the payments.
For example, if you have been paying on this loan for 20 years, you are almost half way paid off, and if you start with a new 30 year loan the remaining balance is paid over 30 years instead of 10 meaning a lower payment.
5. Obviously you need to still be working and have decent credit for #4. It would have been better to consider this 90 days ago, but the 2nd best time is now.
6. You could take a roommate on to help pay bills. Nobody wants to do it, but its better than losing your home.
7. You could move into a cheaper rental and rent out the house to a good long term tenant to cover the mortgage for a couple years until you are in a better situation to move back.
1st step is to call your lender immediately. I know it sounds intimidating, but you need to speak with their "Loss Mitigation" department. At the end of the day, lenders really don't want to foreclose on you—it’s an expensive, losing process for them. They are usually very willing to help out with a loan modification or a forbearance plan, especially when financial hardship is involved.
If you talk to them and a workout plan isn't an option, the next move is to liquidate. It’s much better to sell the property yourself—even quickly—to save your credit and potentially walk away with some equity, rather than letting it hit the courthouse
Do you have any equity in the home? Does it make sense to sell? The challenge here is even if you go into forbearance or some other program, you aren't really solving the problem, you are just kicking the can down the road.
Without knowing all of the details, you do need to have an honest conversation with yourself about your financial situation and start prioritizing.