I Lost My Job and Can’t Pay My Mortgage- What Should I Do?

I Lost My Job and Can’t Pay My Mortgage- What Should I Do?
Arkansas Cash Home Buyers

If you were recently laid off or received a cut in your work hours, one of your primary financial concerns is likely having enough money to pay your mortgage. There are options for ways to avoid the repercussions of missing or making a late mortgage payment. Here are some tips for what to do if you lost your job and can’t pay your mortgage:

Should I Notify My Mortgage Company That I Lost My Job?

You should immediately notify the lender of your mortgage as soon as you lose your job. The earlier the mortgage company is made aware of the situation, the more options you will have available. Sometimes your lender will offer provisions for those with temporary financial hardship. You could potentially be eligible for a mortgage forbearance. This will allow you to postpone or reduce payments for a brief period of time while you secure another job or sort out other finances. This does not provide a permanent solution and does not forgive you of the money that is not paid during the forbearance. The payments will have to be repaid eventually.

Another option to consider is modification of your current mortgage. This could reduce the amount of each monthly payment, but will lead to a greater overall cost due to interest. Mortgage modification could be a wise decision for someone who needs a more permanent solution after losing a job. It might be the right step to avoid foreclosure.

If You Are Having Difficulty Paying Your Mortgage Due to the Coronavirus

Federally backed mortgages include the following:

  • Frannie Mae
  • Freddie Mac
  • Veterans Affairs
  • The U.S. Department of Agriculture
  • FHA

Even if your mortgage is not federally held, some private mortgage lenders are abiding by this mandate as well. Contact your mortgage company to see if you are eligible for this benefit.

What Happens If You Can No Longer Pay Your Mortgage?

What Happens If You Can No Longer Pay Your Mortgage?

If you are unable to make your next mortgage payment and have not requested a forbearance, you could be faced with severe consequences. A traditional mortgage includes a payment due date on the first of the month. Many mortgages contain a 15-day grace period in which you can submit your payment without receiving any penalties. If a payment is received 30 days after the due date, you will be charged late fees and your credit score could be negatively affected. The longer you wait to make a payment, the greater the impact could be on your credit score.

Consider Selling Your Home to a Professional Real Estate Investor

If you foresee that it will be difficult to continue making payments toward your current mortgage, another option is to sell your home and relocate your residence. This could help you avoid having to request a forbearance and put off payments. In addition, you will not risk a missed or late payment, causing negative consequences on your credit score. If you decide selling your home is the best option for your situation, it is best to act quickly for the opportunity of a better outcome. There are several ways you can go about selling your house after losing your job. In order to close on your house fast, one of the best methods is selling your home directly to a real estate investor.

Selling your property to a professional home buyer will allow you to avoid dealing with a real estate agent, showings, or repairs. Professional home buyers will purchase a house in any condition. The process is also quick, granting you the ability to close on your house fast and move on to a different living situation. Additionally, it may leave you in a better financial position than before.

365 Property Buyers is a professional, licensed cash home buyer that can purchase your property no matter what circumstance you are in. If you are looking to sell your home quickly, we can discuss your situation with you. We offer free consultations and can present you with a fair cash offer.  Contact us today! (501) 369-0365

Cities in Arkansas where We Buy Houses

Alexander – We Buy Houses Alexander
Austin – We Buy Houses Austin
Beebe – We Buy Houses Beebe
Bella Vista – We Buy Houses Bella Vista
Benton – We Buy Houses Benton
Bryant – We Buy Houses Bryant
Cabot – We Buy Houses Cabot
Conway – We Buy Houses Conway
Fayetteville – We Buy Houses Fayetteville
Fort Smtih – We Buy Houses Fort Smith
Hot Springs – We Buy Houses Hot Springs
Jacksonville – We Buy Houses Jacksonville
Jonesboro – We Buy Houses Jonesboro
Little Rock – We Buy Houses Little Rock
Maumelle – We Buy Houses Maumelle
North Little Rock – We Buy Houses North Little Rock
Paragould – We Buy Houses Paragould
Pine Bluff – We Buy Houses Pine Bluff
Rogers – We Buy Houses Rogers
Russellville – We Buy Houses Russellville
Searcy – We Buy Houses Searcy
Sherwood – We Buy Houses Sherwood
Springdale – We Buy Houses Springdale
Texarkana – We Buy Houses Texarkana
Van Buren – We Buy Houses Van Buren
West Memphis – We Buy Houses West Memphis
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