Finding yourself facing new financial circumstances that are beyond your control? Does it feel like it’s impossible to make your mortgage payments or to catch up? Then this article is for you. We all run into challenges in life whether it’s a job loss, family illness, or the like. Don’t despair. Here are three things you can do if you find yourself unable to make your mortgage payments in Greenville NC.
Regardless, do not bury your head in the sand! If foreclosure is looming on the horizon, you will want to take immediate action so you can avoid the devastating damage this legal process can cause, both financially and emotionally.
There are steps you can take to bypass foreclosure, so here are the three things you can do if you can’t make your mortgage payments in Greenville.
Rental
Depending on the condition of your property, renting in order to cover your payments could be a good option for you if you can’t make mortgage payments in Greenville.
Yes, this does require moving to a new location with lower expenses out of necessity, and it also means that the location is likely to be less appealing than your current home…
The question is: “Do I want temporary discomfort or stained credit that will crush my options of owning a home or getting a loan again?”
Be aware that as the landlord, you will still be responsible for any maintenance issues or unexpected repairs, so you will need to be able to build this into the rental fee, while still competing with the going rates in Greenville for comparable rentals.
You can visit Rentometer.com to get 5 free lookups that provide a full report on rental rates and trends in your market for properties that are similar to yours.
If the rent is higher than your mortgage and expected expenses, then you’re good to go!
Keep in mind that there is no guarantee that you’ll be able to find someone suitable to rent to in a short period of time…
But it’s worth a shot!
Given that you’ll also be carrying the expenses of living in another residence, working out a successful rental contract under time and financial constraints can be extremely stressful, to say the least.
Another option you can run with is the renting of bedrooms in your current home.
If you are living alone or with a spouse, you may have one or two rooms available…
Check for the rental rates for bedrooms in an occupied home and add that to the list of options that you have.
While it may seem like it will be uncomfortable inviting a stranger into your home to live with you, it’s important that you weigh out your options.
Also consider reaching out to family or friends who may be living in student housing or with roommates.
They’re already used to living with other people so you may be able to convince them to live with someone they know and trust!
Work With the Lender
Working together with the lender on a refinancing plan or a loan restructuring could meet both of your needs.
It’s another great step you can take if you can’t make your mortgage payments in Greenville.
Remember this first and foremost: “The lender doesn’t want your house.”
It can be hard to believe since they seem to want to take it back so they can sell it to make up for the money they’re losing when you don’t pay your mortgage, bit in reality trying to sell a house is extremely difficult for a lender!
They’d much prefer to work with you and try to get you paying your interest payments again…
You may have to convince your lender by advocating for yourself and showing demonstrating to them that you are dedicated to doing everything within your power to uphold your financial responsibility.
Again…
That’s really all they want…
Reach out to your lender should you come to realize that your budget has new limits that cannot manage the current mortgage payments.
Just by taking the first step, your lender will see that you’re serious and can work with you to see if refinancing or a loan modification are options for your specific situation.
Another option your lender may consider is a short sale, so its worth bringing it up in your conversation.
Be aware that with a short sale, you could end up owing the difference of what your home is sold for and the amount remaining on your mortgage note…
This is known as a deficiency judgment and is best to be avoided when possible…
It’s also possible for the lender to foreclose on your property while they’re trying to sell it in a short sale…
The foreclosure process never really stops when they’re taking this route.
If the lender can not work an arrangement out with you, based on your situation, there are other programs you may wish to explore with your state or federal government.
Naturally, this process will involve meeting certain qualifications, so you’ll need to reach out to a counselor prior to submitting an application.
Selling
Selling your property on your own, rather than opting for a short sale, is another option you can take if you can’t make your mortgage payments in Greenville.
Many times this requires that you have enough equity in the home to be able to pay off the existing mortgage and any late fees with the proceeds of the sale.
While you could list your home with an agent, or sell the property as for sale by owner (FSBO), there are three primary challenges with these options…
Especially when you’re facing foreclosure…
The challenge is Time.
There are no guarantees that you’ll be able to sell your property in the first place before the property is foreclosed on.
Secondly, there is absolutely no guarantee that a Greenville NC real estate agent will even list your property.
Finally, the expenses involved when listing with an agent or as an For Sale By Owner can be large…
You will need to have the funds available to cover all of the associated costs…
Unless your home is brand new, there may also be repairs that need to be made.
Also remember that you’ll need inspections, appraisals, and possibly more specialized professionals that will investigate the property and mitigate problems, examples include mold and termites, before the buyer will close on the house…
You will also have to cover the costs of marketing in no matter which way you go.
Should you have chosen to work with a real estate agent, you will also have the additional expenses of paying their high commission and all the traditional associated fees involved in the transaction.
Yes these do come out of the proceeds from your home, but if there are only enough proceeds to pay off the loan in the first place then you may be caught holding the bill…
You will want to keep in touch with your lender, letting them know the action plan you have chosen.
As with any relationship, communication is the key to success, you will want to remain in close contact and keep them posted on all of the steps you take along the way.
Understandably, they will be looking for actions from you that result in a quick resolution.
For this reason, you may wish to consider the time and money-saving benefits of a direct sale of your property, which more often than not, takes place as an “as is” transaction.
Ready to resolve the financial strain you are under, avoid all of the headaches and costs of listing your home, and be assured of a sale, in a very short amount of time? If you can’t make your mortgage payments, then you have another choice.
The best thing you can do if you can’t make mortgage payments in Greenville is to sell it to Pitt Home Buyers directly! Learn more about how we can help you by sending us a message or giving us a call at (252) 227-0274 today.