Can't Afford Mortgage
CASH IN YOUR POCKETS IN A FLASH
MOVE ON IN AS LITTLE AS A WEEK
When your lender moves you to a standard variable rate that increases the interest rate, it can result in you being unable to afford to pay your mortgage. However, you might be able to move to a fixed mortgage rate. This option assumes you want to keep the loan amount at the same level.
The major advantage to a product transfer is that you are less likely to be subject to a full valuation. Moreover, it tends not to involve a complicated legal process.
However, product transfer rates are typically higher than those lenders offer to new customers. Make sure you get the best deal by working with a whole-of-market mortgage company.
Remortgaging When You Can’t Afford Mortgage Payments
When you remortgage your property, you refinance your mortgage in an attempt to gain a better rate or better terms. If you are currently on your lender’s variable rate, you might find better rates when you remortgage, at least in the short term. This means your mortgage payments will be lower.
Additionally, remortgaging might allow you to change the term of the mortgage and lower payments over a longer period of time. Typically, this is subject to your age, income, and credit report. Still, it might reduce your payments and provide short-term relief.
If you are on a capital repayment mortgage, you might be able to switch to an interest-only agreement with your lender or with a new lender. In an interest-only mortgage, you only pay off the interest each month. However, this also means that the loan is due in full at the end of your term.
When you do this, it can significantly lower your mortgage payments each month. However, you must provide evidence that you will be able to settle your debt at the conclusion of your mortgage agreement. This is a viable option when you are in a temporary period of hardship.
Equity Release for Ages 55+
Also known as a lifetime mortgage, an equity release allows you to release cash from the property without leaving the home. This means you don’t have to face moving expenses or an unwanted upheaval.
Generally, you have no monthly mortgage payments or the option to repay at an affordable fixed rate. Then, the outstanding balance must be repaid after the sale of the property. For example, you might move at a later date, pass away, or move into residential care.
Sell Your Houston House to a Home Buyer
Sometimes, your best option when you can’t afford mortgage payments is to sell your house. Houston homeowners often come to us because they want to avoid foreclosure. If you default on your mortgage repayment plan, working with a professional Houston home buyer helps you get cash for your house fast.
Can’t Afford Mortgage Payments? Sell in a Flash
The team at Flash Realty Solutions works with Houston homeowners throughout Harris, Ft Bend, Brazoria, and the surrounding counties. We have helped our neighbors through sticky situations for the greater part of the last two decades. Our team of professional home buyers understands the market and cares about the people who live in Houston, TX.
As our neighbors, friends, and family, our clients deserve dignity and empathy as they work through tough times. We go above and beyond to ensure our clients are well taken care of.
As Houston home buyers, we understand that it’s a struggle when you can’t afford mortgage payments. Moreover, selling your house in the best conditions can be challenging and stressful.
When you need to sell your house fast, we understand that the process must be simple and straightforward. When we buy houses in the Greater Houston Area, we operate with transparency.
If you default on mortgage repayments and need to sell your home, give us a call at 832-934-8856. Alternatively, you can fill out our online form. Contact us today to see how our team can help you!
Common Questions When You Can’t Afford Mortgage Payments
First, contact your lender. Their phone number is on your loan statement for monthly payments. It’s also available on their website. When you call your lender, explain your situation.
- Why you cannot make your payment
- Whether this is a temporary or permanent issue
- Details about your income, expenses, assets
- Whether you are in the service and received permanent change of station orders (In this situation, you might qualify for loss mitigation options.)
Many mortgage lenders have options to help people avoid foreclosure. They truly do not want to go through the hassle of foreclosing. Once you provide your details, they assess the situation and consider what options apply to your case. For instance, they might ask you to fill out a mortgage assistance application.
Potential Options When You Can’t Afford Mortgage Payments
Some of the options that might be available include:
- Working out a repayment plan
- Getting forbearance
- A short-sell
- Getting a loan modification
- “Deed-in-lieu of foreclosure”
- A fast sale to Flash Realty Solutions
YES! There are many scams out there that want to take advantage of people in vulnerable situations. At Flash Realty Solutions, we offer our neighbors the dignity they deserve and help them find the right solution to sell their house. If you want to sell your house for cash, we provide fair, cash offers with no obligation.
When you want to explore your other options, we are happy to help. What we don’t want is for you to fall prey to the scammers. With a HUD-approved housing counselor, you have someone to lay out the best options for you. Moreover, you don’t have to pay anyone when you need to avoid foreclosure.
The help you need is available from your lender, a HUD-approved counseling agency, or real estate investors like Flash who have the experience and knowledge to help you understand your options.
Warning Signs of Scams
Scammers try to tell you they can save you from foreclosure. In reality, they just want your money. Here are some warning signs to watch out for.
- They guarantee changes to the terms of your mortgage.
- The company asks for payment upfront.
- They guarantee you will not lose your house.
- The person asks you to sign over the title of your house or other documents you don’t understand.
- They tell you to send payments to someone other than your lender.
- The company offers a “forensic audit.”
- They tell you to stop paying your mortgage.
- The company claims affiliation with the government or uses a logo that resembles a government seal but isn’t the same.
For those who have a private mortgage, they are subject to whatever options their mortgage holder provides. However, when you can’t afford a mortgage payment, never just stop making payments.
It’s essential for you to reach out to your lender and ask them what your options are. Here are a few of the arrangements that certain private lenders offer.
- Ally Bank defers payments for up to 120 days. However, interest accrues even though they don’t charge late fees. Moreover, there is no impact on your credit score.
- Bank of America offers Home Loans Special Payment Forbearance to temporarily suspend payments.
- Navy Federal Credit Union allows potential forbearance for up to three months.
- Quicken Loans mirrors the programs for federally backed loans.
- TIAA Bank allows some eligibility for temporary forbearance. Moreover, rate locks on refinance loans extend to 90 days.
2021 Mortgage Relief Programs
When you can’t afford mortgage payments, it’s important to check for relief programs. Throughout the years, many relief incentives have been passed. One of the best known is HARP. This program helped numerous borrowers keep their homes following a major financial crisis.
Under the COVID stimulus programs passed by Congress, homeowners have options for temporary payment relief. What if you need long-term relief, though?
Luckily, there are options. For instance, the HIRO program and Enhanced Relief Refinance both continue to help homeowners refinance with little to no equity in their homes.
Mortgage Relief Refinance Programs in 2021
With a mortgage refinance relief program, people who can’t afford mortgage payments replace their existing loans with new ones. The newer loan has a reduced interest rate as well as more affordable payments.
Oftentimes, when people think of federal mortgage relief, they think of the Home Affordable Refinance Program (HARP). The Federal Housing Finance Agency was a government program that started in 2009. While it ended in 2018, the program helped millions refinance after a major housing crisis.
Today, many homeowners find themselves struggling to make mortgage payments. This is especially true in areas where property values fell in recent years. With HIRO and FMERR, the government helps homeowners refinance at today’s lower rates.
When you can’t afford mortgage payments, you may qualify.
Before you talk to your loan servicer, it’s important to prepare for the conversation. Have notes ready about your income and expenses. Moreover, it’s beneficial to calculate the equity in your home. To do this, estimate the market value of your home minus the balance of any mortgages or home equity loans.
Then, consider the answers to the following questions.
- What happened to make you miss a mortgage payment?
- Do you have documents that back up your explanation?
- What attempts have you made to resolve the issue?
- Is the problem permanent, temporary, or long-term?
- What changes do you foresee for your financial situation?
- Are there other financial issues that mean you can’t afford mortgage payments?
- What do you want to do? Do you want to keep your home?
- What type of payment arrangement is feasible for you?
Additional Notes to Consider
- Maintain notes on all communications with your provider. Include dates, times, means of contact, the name of the person, and any details on the conversation.
- Follow up any oral requests with a letter or email. If you send a letter, send it by certified mail with “return receipt requested.” This proves they received your letter. Additionally, keep copies of any letters and documents you send.
- When the provider gives you a deadline, be sure to meet that deadline.
- Stay in the house throughout the process. If you move out, it may disqualify you from certain types of assistance.
- Do not rent out your home. This changes it from your primary residence to an investment property. Likely, it disqualifies you from certain assistance programs.
- If you decide to rent out your house, ensure the income you receive is enough to cover your current loan payments.
When you can’t afford mortgage payments, you have options. At Flash Realty Solutions, we help homeowners solve problems. When you need to sell your Houston house fast to make up your mortgage payments, we buy houses as-is.
Contact our team today for a no-obligation cash offer on your house!