WHAT TO DO IF YOU CAN’T MAKE YOUR MORTGAGE PAYMENT
The economy collapse of 2008 coincided with the mortgage downfall of 2009; however, it was not as financially ruinous and widespread as what the preventive measure lockdown of Covid-19 is currently heaping on the economy. The consequences of this public health crisis have led to furloughing in some key economy sectors, to outright downsizing in others, uniformly exhausting savings, and slowing everyday bill payments in the process. The light is that the federal government has thrown the homeowners some bones, by halting the payment of mortgages, for a short time. This measure as important as they are in lifting the weight of mortgage payment on homeowners should not be taken hook line and sinker, as the cue to start defaulting on the payment of your mortgage, without the right information that will guide you down the road. Here are a few and important information you can act upon if you can’t make your mortgage payment during this uncertain period.
Contact Customer Service
The social and main media is filled with leading and misleading news on a mortgage payment. So how do you stay ahead of the curve? The smart choice is not to make assumptions based on the news that is peddled on the news; the right move is to contact your lending institution to be informed about the kind of lending package they are offering, if any. It is imperative also to note the kind of payment they have pandering to: is it a payment modification or deferment? Now the two methods are very different. Payment deferment would make your lender allow you to defer on the payment of your mortgage for the next three months or so without negative implications for your credit. The implication is that they would be asking for the full payment when the 90 days grace period. Modification differs from deferment in the sense that your loan interest is decreased to a minimum percentage you can afford while adding any missed payment to the back end of the loan. At the end of the grace period, if you cannot make full payment, your lenders may start the business end of foreclosure. Although Independent or Individual lenders may handle things differently – outside the confines of mortgage financial law – it is important to talk to your mortgage lender before making any decision.
The economy seems very uncertain at the moment; nobody really knows when things are going to change. As the government plans the easing of the lockdown, the current civil unrest is spiking the cases of Covid-19 in states that were previously not regarded as a HOT ZONE, making the large scale easing of industries and individuals into the economy complicated. Lenders, on the other hand, don’t have to continue to accept a partial payment, or even extend deferment, if they don’t want to. To be cautious, you should assume that your lender would demand full payment. How then do you plan on making your mortgage payment after the three months assistant period? This question rests on the assumption that your business might be opened in the next few weeks, or your paycheck bounced back to what it was before, or you will be resuming the position your company furloughed you from. To not run the risk of losing your home, you should weigh these options and make a plan.
Capital/Equity Evaluation
The current situation is making everyone re-evaluate their immediate and future financial standings. With a large percentage of the population not being able to make a payment or finding themselves in a dicey employment situation, perhaps, it is time to look into your lines of equities. Pension stocks, retirement funds, and any other capital stocks. Talk to your financial advisor before you make any important financial decisions. You can also explore the HELOC option with your line of equity. Although their interests are at historic lows, with interest flexibility payment, they have the propensity of adding negative value to any future sale of your home.
Weigh Future Earnings
This current public health crisis has put many employees, local businesses, and even employers in a dire situation. If it has come to your knowledge that your employment or business situation might not change in the nearest future, i.e., the mortgage payment period your lender is giving you during this uncertain time. It is in your interest to ACT NOW. Why? For one, it is best to get at the forefront of the real estate market situation before the market starts to dip; or before you get any bad rep on your credit report.
Get a Cash Offer For Your Property
On the other hand, this would be the right time to consider selling your home. Putting a home at the risk of a foreclosure on the market will give you the opportunity of capturing what equity you have left before running the risk of losing your home to your lender. A quick offer on the table would enable you to make a fast decision that might steer you towards a positive financial return at the end of this crisis, and that’s what we do at Honorable Homes Solutions. Getting a positive cash value for your property is a given with us, and we offer it an easy and fast rate. We buy and sell homes and we will be able to give you a fair offer that your home will command in the current market.
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