It is no secret that many homeowners are struggling to make ends meet. If you are in a tight financial situation and have concerns about losing your home, you are not alone. The number of loan defaults has increased steadily over the past few years, and in many cases, the foreclosure process sneaks up on the homeowner. Fortunately, there is mortgage advice about what you can do to bring your loan up-to-date and save your home.
The mortgage advice below can help struggling homeowners manage finances and avoid foreclosure:
- Don’t hide from your lender
Many people who have missed their mortgage payments simply dodge their lender instead of confronting the problem. But avoiding and ignoring unpaid debt will only make it worse. As soon as you realize that you’re falling behind, you should contact the lender and be honest about your situation. This allows the lender to give you any mortgage advice they may have, and you might even get the opportunity to restructure your loan.
- Consider downsizing
Is it possible to sell your current home and live somewhere that’s more affordable? This is not the kind of mortgage advice that most homeowners want to hear, but it has become a popular option in recent years. Although it is a difficult decision, moving into a smaller home could save you a lot of money in the end (with lower utilities bills, property taxes, cost of general upkeep, etc.). Even if you are “upside down” or have an underwater mortgage, you may be able to sell your home through a short sale.
- Prioritize your expenses
If keeping your house is the most important thing, you need to put your mortgage payments above all other bills and make it a top priority. You may have to cut back in other areas (spending, shopping, going out) and determine a firm budget so you can focus on making each mortgage payment on time. This piece of mortgage advice may sound like common sense, but it is something that many homeowners neglect.
