What To Do When You Can’t Afford To Pay Your Mortgage

By John Salkowski

The JRS Realty Group, founded by high-producing Real Estate Broker & Author John Salkowski was built on the notion that the secret to achieving incredible goals and getting true results is to dominate real estate with a team approach.

Falling behind on your mortgage can feel overwhelming, but you have options. Many homeowners wait too long and lose their homes to foreclosure, even though there are steps they could take to prevent it. If you are in this situation, here are some things you should know.

Call your lender right away. The first step is to contact your lender. Explain your situation and ask about the available solutions. Lenders often have programs that can help you get current on your loan or create a repayment plan. Making that call shows that you are taking action, which can open the door to options you may not have realized existed.

Avoid foreclosure by acting early. If you fall more than four or five months behind, the bank can initiate foreclosure proceedings. Foreclosure is not only the loss of your home. It also damages your credit for years and can prevent you from qualifying for another mortgage for at least ten years. Acting before it gets to this point is the best way to protect your financial future.

Explore the value of your home. Selling may be a smart option if keeping your home is no longer possible. Many homeowners assume they have no equity, but that is not always the case. Last year, two homeowners who were several months behind on their payments decided to sell. After reviewing the market value of their homes, they discovered they still had equity. We listed their properties, paid off what they owed, and both were able to walk away with money after closing. Their story shows that falling behind does not always mean you lose everything.

Protect your credit and equity. The key is to take control before the situation gets worse. Calling your lender should always be the first step. From there, reviewing the value of your home and considering all options can prevent years of setbacks. The sooner you act, the more choices you will have to protect both your credit and your equity.

Falling behind on your mortgage does not mean you are out of options. With the proper steps, you can safeguard your home, credit, and future. If you are struggling and need guidance, call or text me at 610-709-5147 or email me at John@JRSRealtyGroup.com. I can walk you through your choices and help you find the best path forward.