A global health crisis brought with it an economic decline and mass unemployment. Millions of people lost their jobs. Unfortunately, many of them were already living paycheck to paycheck with very few reserves to cover everyday expenses. Consequently, homeowners fell behind on their mortgage payments, resulting in the start of foreclosure proceedings nationwide. As the economy begins to recover and vaccination distribution increases, many wonder what will happen to their homes. Continue reading for advice.
Talk To Your Mortgage Company
Before panicking, the first thing you want to do is consult with your mortgage company. Many agencies have created programs to help homeowners that have been impacted by the pandemic. If you fell behind on payments because you lost your job or contracted the virus, there are various options available. Some mortgagers will provide grace periods, create more affordable arrangements, or allow you to refinance your mortgage. Explain your circumstances and get help before it’s too late.
Consult An Attorney
If your mortgage provider is unwilling to work with you or you’re not eligible for the COVID-19 financial assistance programs, the next step is to consult an attorney. A foreclosure attorney is aware of homeowner rights and foreclosure proceedings in your state. They can assist you in applying for assistance, filing a response to the courts, negotiating with your mortgage company, or fighting your case in front of a judge. Consultations are often free and would let you know what your options are, so don’t hesitate to reach out and learn more. If you do have to pay legal fees, you can find loans Lawton OK and other cities across the country to tide you over.
Improve Your Credit
For homeowners planning to refinance their mortgage or apply for a new or second mortgage, you’ll need to improve your credit. Lenders will review your credit history and score to determine whether you’re eligible for a mortgage. If your credit has taken a hit since the pandemic, you’ll want to clean things up before you apply. Develop a debt repayment plan, keep your accounts up-to-date, and try to reduce your debt-to-income ratio and credit utilization rates.
Get A Side Hustle
Although the job market seems to be bouncing back, many Americans still can’t find suitable employment. If you fall into that category, perhaps a side hustle could help. There are plenty of gigs available that you can take advantage of despite your educational background or professional experience. Some people have found side hustles that generate more income than their old jobs. You can use your car and become a rideshare driver or deliver groceries. If all you have is a lawnmower and a few gardening tools, you can offer landscaping services in your neighborhood. There are also walking dogs, babysitting, tutoring, blogging, web design, and so much more. Finally, consider becoming a consultant in your area of expertise. You can use the funds to improve your credit, pay down your mortgage payments, or hire an attorney to help stop or delay the foreclosure process.
Stimulus Payments And Income Tax Refunds
Another way to tackle your past-due mortgage payments is to use your stimulus checks or income tax refunds. Although it may be tempting to use this money to buy temporary satisfaction, applying it to your home is ideal. These large sums of money can be accredited to your account and reduce the amount you owe to the mortgage company. Once you get the balance within reason, you may be able to qualify for a new payment arrangement.
You’ve been through a lot the past year. You may have lost your job or even a loved one due to the pandemic. Why add your house to the list? As millions of people find themselves in the same position, the federal government and mortgage lenders are doing all they can to help. Take advantage of every opportunity you can to save your home. Although nothing is guaranteed, using the advice listed above can put you in a better position to fight for what’s yours.
