It’s not uncommon to fall behind on mortgage payments. More than three million homeowners missed, delayed, or partially made their mortgage payments in Missed mortgage payments totaled $83.9 billion in October 2021, according to the Mortgage Bankers Association, showing how the coronavirus pandemic continues to strain the economy.
Option #1: Catch Up With Your Mortgage Payments
If you are behind on your mortgage payments in Phoenix, you have options to avoid foreclosure.
Refinance Your Mortgage
A refinance can lower your monthly payment substantially if you qualify for a lower interest rate. However, it is important to keep in mind that eligibility for a refinance depends in part on your financial situation. In general, you’ll need:
- A credit score of at least 620
- A debt-to-income ratio of 43% of less
Forbear Your Mortgage
A mortgage forbearance program allows borrowers to temporarily reduce or suspend their mortgage payments for a specified period of time without incurring additional fees or interest. You should ask your loan servicer how they will report your account to the credit bureaus when you call to check your forbearance options.
Negotiate a Modification of Your Loan
Loan modifications can also be applied for by homeowners with demonstrated financial hardship. Forbearance is temporary, while a loan modification is a permanent agreement between you and your lender.
Your lender may agree to extend the loan term or reduce your interest rate depending on the program. You do not need to qualify for a new mortgage or come up with closing costs to make your monthly payments more affordable.
Reduce Your Housing Payment Each Month
In addition to principal and interest, homeowners pay insurance, taxes, and other fees as part of their monthly house payment. You can put some wiggle room in your budget by considering these ways to reduce these costs:
Reduce the cost of your homeowner’s insurance
Research tax abatement laws
Find out how much your home is worth
Create a Repayment Plan
Whenever you find yourself unable to pay your mortgage, contact your lender and ask for a customized repayment plan. You may be able to get a loan from your lender, especially if your income has stabilized. Your past-due amount may be added to your upcoming mortgage payments, spread over a few months.
Option #2: Sell Your House
In the event that you have fallen behind on your mortgage payments, but are not yet underwater (meaning your home is worth more than what you owe on it), you can sell your house and use the profit to repay your lender.
You’d do the same things you’d normally do when selling a home: Find a real estate agent, accept an offer, and fulfill any contingencies before closing the sale.
But if you’re asking, “How do I sell my Phoenix home fast?”, your option is to sell to a cash home buyer. These kinds of buyers offer to buy in cash and will close the deal in a matter of weeks or in your chosen schedule. They won’t ask you to repair or remodel the home compared to when you sell the traditional way.
Find Out How Much Cash Your House is Worth Today
Looking for a trusted cash home buyer in Scottsdale, AZ? You can count on United Home Offer to make the home selling process quick, easy, and, most importantly, safe no matter how bad your house is?
We often purchase houses that must be sold quickly or require extensive repairs. With our experience, we can take the burden off your shoulders.
From the time a contract is signed to the time cash is in hand, it typically takes as little as a few weeks. Submit your information to receive a cash offer for your home.
For a no-obligation consultation, fill out the form or call now at (214) 817-4224.