Can't Afford Mortgage Payments?
Can’t Afford Mortgage Payments? You Have Options
We frequently work with Houston homeowners who have fallen behind on mortgage payments and need advice. While you might think these questions just come from first-time buyers, they come from all types of people who are in over their heads for one of many reasons. It can be hard to keep up with mortgage payments. Moreover, some homeowners just cannot afford them, especially during times of high unemployment.
When you can’t afford mortgage payments, it’s important to remember that you have options. If you struggle to make mortgage payments, there are several options to help you avoid foreclosure and the financial damage it causes. Here are things to consider when you cannot keep up on home loan payments.
What Can I Do if I Can’t Afford My Mortgage?
Life is unpredictable, and it has a habit of throwing obstacles at us. These objects might drastically alter your financial situations. As a Houston homeowner, you might find that these incidents cause you to default on your mortgage payments for a month or two.
Alternatively, you might find yourself in a situation where you can’t afford mortgage payments anymore. Luckily, you have a number of options available to work with.
Contact Your Lender
Oftentimes, Houston homeowners ask us “What can I do if I can’t afford mortgage payments this month?” First and foremost, you need to contact your lender. If this is a long-term issue, your lender might work with you on a few solutions.
- Extend your mortgage without remortgaging to reduce your monthly payments over a longer period of time.
- Defer the payment. If you’re in a temporary situation, you can ask to defer mortgage payments for a set period and agree upon a date to make up the difference.
- Payment holidays. This might impact your credit score. However, it might give you time to get back on your feet in a financial sense.
What Are My Options When I Can’t Afford Mortgage Payments?
For Houston homeowners who can’t afford mortgage payments, try not to panic. Here are five options from our professional Houston homebuyers that can help you, including loan modifications.
- Product transfers
- Interest only
- Equity release
- Sell your house to real estate investors
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 understand the market and care 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!