Can't pay your mortgage this month? Here are some options

Maybe your employer suddenly shut down or there's been a reduction in the workforce that's left you unemployed. Whatever the circumstances, your mortgage payment is looming, and you don't have enough money coming in from other sources to pay the bill.

What can you do? First, it's important to deal with the situation head-on. You have nothing to gain by ignoring the situation. A proactive approach is always the best choice.

Here are the next steps you should take:

  1. Gather up all of your bills. This will help you better asses your financial situation and make it easier to answer any financial questions you may be asked later.

  2. Call your mortgage provider. Explain why you cannot make your payment and how long you expect the situation to last (if you know). Ask if your provider offers any program that will help you avoid foreclosure. You may also want to seek assistance through the Department of Housing and Urban Development (HUD).

  3. Consider all your available options. You may be able to refinance your existing mortgage in to one that's affordable or to obtain a forbearance that will allow you to skip a few payments.

  4. If you don't think your situation is temporary, ask about the possibility of a short sale or a "deed-in-lieu of foreclosure" option. A short sale allows you to sell your home for less than you owe to get out from under the mortgage. A deed-in-lieu of foreclosure permits you to turn the title of your home over to the bank instead of going through the foreclosure process.

Finally, talk to an attorney -- particularly if you decide that you need out from under your mortgage. While foreclosures, short sales and deeds-in-lieu of foreclosure are a solution when you're overburdened by a mortgage, you don't want to have any leftover debt haunting you. Please continue viewing our website for more information or contact our office to learn about our services.