POWER REAL ESTATE
HERE’S WHAT TO DO
If You Are Struggling to Pay Your Mortgage
REACH OUT AND ASK FOR HELP One thing you need to understand is that failing to pay your mortgage will damage your credit score, which is especially worse during a financial crisis. The lower your credit score will get, the more difficult it will be for you to borrow money in case of an emergency. In addition, failure to pay off your mortgage means you become too delinquent on your mortgage thus you will be exposed to the risk of getting foreclosed. One you notice that you are struggling to pay off your mortgage, the first step for you to take is reach out to your mortgage lender right away and ask for leniency. The best thing is that many mortgage lenders understand that circumstances happen and they are willing to help you through your financial hardships. In many cases, I have seen borrowers deferring on their mortgage payments for a number of months during a crisis and even 14 | FEBRUARY 2022
though interest on the loans (may) still accrues, the payments will not be regarded as delinquent which means your lender will not report them to the credit bureaus. When you call your mortgage lender, be ready to explain some few details including; • • •
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Why you are unable to make payments. Whether your situation is temporary or permanent. Details about your income, expenses and any other assets you may be having, like cash in bank. If you are a service member and have received permanent change of station (PCS) orders. (This is important to mention, because you may qualify for loss mitigation options because of your military move.)
GO FOR COUNSELING You may opt for a HUD approved housing counselor who can; • Review your situation with you and determine whether you qualify for any programs or are in need of additional help. • Help you to get a better understanding of your loss mitigation options your services offers and the best options that will work the best for you. • Offer guidance through the process of
PHOTOS FROM 123RF
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re you struggling to pay off your mortgage? Most people especially now are behind on their payments because of the Covid-19, it is making people not just sick but lose their incomes due to shutdowns. If you are struggling to pay off your debts, more so your mortgage, here are some steps to avoid a foreclosure.
