We all know times have been tough lately. If you’re a Georgia homeowner you may be wondering, what happens if you can’t pay your mortgage anymore?
This can be a tricky situation, but we’re here to help you navigate it.
What Is a Mortgage Loan?
Each loan comes with different terms and guidelines. The most common is to begin paying a mortgage loan once your home is fully paid off. The first mortgage debt should be fully paid by retirement or a guaranteed minimum monthly payment by a certain date. If you can’t pay your mortgage your lenders will foreclose on your home. You have time to make a payment on a home loan before being foreclosed on.
What Happens If I Can’t Pay My Mortgage?
Fannie Mae recently released a report that talks about how a consumer lender can take action if you can’t make your loan payments. They offer these tips for consumers to help. If you can’t afford the mortgage payments any longer and you are seeking to reduce your loan payments, then you should work with your lender to consider your options. In the case of a problem with the loan, the Lender may be able to modify your loan. You’ll need to work with your lender to evaluate your income and expenses.
What Are My Options?
First, sit down with a lender. Many times, they might offer you an interest rate lower than the one you have with your current lender, or even more than one. Even if you don’t ask, lenders are going to put you into forbearance first. This is a period where they do not charge you any interest, but allow you to make only minimum payments. At some point, the lenders may allow you to sign up for an income-based payment plan. Another thing that lenders do is offer you a grace period. They are giving you a little more time to make the required payments.
What Are My Responsibilities?
The first thing you need to know is that your home isn’t technically in default if it is less than 60 days delinquent. For example, let’s say you owe $30,000 on a $200,000 home. Your payment at this point would be $500 per month. This means you’re only 2% delinquent. However, if you stop paying your mortgage for more than 60 days, your mortgage becomes delinquent. What does this mean? The first thing to know is that the bank will apply a foreclosure notice, which can be really intimidating, to your account. They will offer a variety of options, including: An Offer in Compromise This is when the bank offers a discounted price to reduce your loan balance to $0, or keep your home and just pay a higher monthly payment.
Contact Patriot Home Buyer Today
If you can’t pay your mortgage fear not, Patriot Home Buyers is here to help. We buy homes in any condition fast and in cash so you can avoid foreclosure or bankruptcy. If you’re selling your home in the Atlanta, Georgia, area contact us today to get your free, no obligation offer, and you can have cash in hand for your home in as little as seven days.