Struggling to pay your mortgage
If you are constantly checking your bank account leading up to the day your mortgage payment comes out or you have been late with a payment or even missed a payment then you understand the stress this causes. Your mortgage payment is different to other debt as it ultimately provides you and your family with a roof over your head. So if you jeopardising your mortgage you are also risking the safety of your home.
So if you are struggling to meet your mortgage repayments there are several things you can do:
1. If you are about to miss a payment, don’t bury your head in the sand! Contact your bank and tell them what your plans are. Perhaps your mortgage payment is due on Friday but you don’t get paid till Monday. Let them know that is what you plan to do. Or perhaps you can only pay half on Friday and the balance on Monday. Whatever you are able to pay, be sure to keep the bank informed. This can work in your favour and sometimes the bank will overlook some fees if you have talked to them PRIOR to a problem occurring.
2. If you are behind or late with payments then consider going in to the bank to talk to someone about this. Again open lines of communication demonstrates to the bank that you are aware and concerned about the problem and can help you out down the track if things get worse.
3. Consider some changes to your current mortgage. You can speak to us as your mortgage broker and we can investigate some options for you that may reduce your repayments. Some of the things we can look in to for you is to increase the term of your loan or move to an interest-only payment option. We are sometimes able to negotiate with the bank on your behalf to give you a temporary break under certain circumstances, for instance if you have lost your job. Again, the sooner you talk to us the sooner we are able to look into different options to help you out.
4. If things are getting really serious and you are receiving threatening letters regarding foreclosure you should consider selling your home. Remember if the bank sells your home their only concern if to recover the mortgage and they will often accept a lower price than what you might get selling it yourself. If you still have the option to sell it yourself then this is always preferable to the bank selling it.
Remember, there are always options open to you no matter how dark and desperate things can seem at times. Living with financial stress can be hard on all members of a family. Aside from the tips above you might want to consider speaking to a charitable organisation like The Smith Family that offers help in the form of financial counselling. Don’t be too proud to seek this out. And, as a final thought for everyone, be responsible for your finances, don’t pretend things are fine – the sooner you take control, the better your chances of keeping your home.