Can’t Make Your Mortgage Payment? Here’s What to Do.
Every person’s home should be their castle, but in these tough times more people are having trouble paying their mortgage. If you are one of the millions of Americans struggling to make ends meet, you are not alone. Whether you have experienced sudden job loss, a costly medical procedure, or unexpected family change, you may feel like you are drowning in debt. Let Tony Buys Homes help you through this tough period and back to living your best life! For over 10+ years, we have been the number one home buying company in Chicagoland & Naperville. Call our local office at 815-488-6373 for a free estimate today!
What are my options if I can’t pay the mortgage in Chicagoland?
Whether you are staying in a home that is too tiny, a neighborhood that does not fit your needs, or you are cutting back on necessities like healthcare, you may want to consider shedding unnecessary bills. If you are struggling to keep up with your payments, there are a few options available to you:
- Refinancing your mortgage – If you have a good credit score, refinancing may be the best option for you. Ditto if your loan has a high interest rate.
- Debt settlement – Your lender will agree to receive less than the full amount owed in order to be paid in full. May negatively impact your credit rating.
- Forbearance – Your loan lender will reduce or suspend your mortgage for an agreed upon period, after which you resume making normal payments.
- Home renting – If the rent is higher than the mortgage, you can even potentially turn a profit! However, you are still liable for repairs, liability, insurance, and taxes.
- Foreclosure – Your loan lender releases you from your mortgage in exchange for the deed to the property. Will negatively affect your credit rating.
- Sell your home in Chicagoland – If your home is worth more than what you owe, selling your home could be the right way to go. Hiring a real estate agent or agency to list your property and take care of the heavy lifting sounds like a good deal, but you will pay fees and closing costs.
- Real estate cash investment company – Your final option is a cash home buying company like Tony Buys Homes. Companies like ours give you a fair offer for your property, usually within 48 hours. Not to mention, there are no closing costs, paperwork, or fees. Just collect your money and get back to what matters most!
Can you get help with your Chicagoland mortgage payments?
There are actually government agencies, NGO’s, banks, and state organizations that provide aid and loan modification services, in addition to other means of mortgage assistance nationwide. These programs vary wildly from state to state, with some offering direct financial assistance while others offer reduced payments. Many major banks offer some form of mortgage assistance, including Bank of America, Citibank, Wells Fargo, and Truist. You can also apply online.
How many months can you not pay your mortgage before foreclosure?
When you apply for and take out a home loan, it is understood that you may miss a payment now and then. However, if it has been happening more frequently, the topic of foreclosure could be on your mind. The rule of thumb is that four payments, or 120 days delinquent, is normal before the foreclosure process begins. In addition to having a huge impact on your living situation, a foreclosure can be disastrous for your credit rating:
- Your first missed payment will most likely be met with a grace period followed by a late fee.
- By your second missed payment, you are usually in danger of going into default. Your lender will most likely try to contact you by phone and email.
- At the 90 day mark or your third payment, you will traditionally be sent a letter of demand informing you that you have roughly 30 days to pay your balance.
- The foreclosure process begins at the 120 day mark. You will be required to pay any legal fees incurred.
Contact Tony Buys Homes in Chicagoland & Naperville today!
Now that you have understood your available options for making your mortgage payment, selling your home, and the process of foreclosure, you can get started by contacting our local office at 815-488-6373. We can help you with every step of this process and help you to understand the options available to you. Let us take the hassle out of your home selling experience!