Did the fall out from COVID leave you facing new financial circumstances that are beyond your control? Don’t ignore the problem, take action! If foreclosure is highly likely in your future, you will want to take quick action in order to avoid the long term damage that this legal process can cause, both financially and emotionally. There are steps you can take to avoid foreclosure, we will go over 3 things you can do if you can’t make your mortgage payments in Grandview.
Rental
Depending on the condition of your property, renting in order to at least cover your payments is one of the things you can do if you can’t make mortgage payments in Grandview. While this will mean moving to a new location with lower expenses out of necessity, it does also mean that the location is likely to be less appealing than your current home. You should be aware that as the housing provider, you will still be responsible for any maintenance issues or unexpected repairs, so you will need to be able to build this into the rental fee, while still competing with the going rates in Grandview for comparable rentals. Another problem with renting the home is that there is no assurance of how quickly you’ll be able to find someone suitable to rent to. Given that you’ll also be carrying the expenses of living in another residence, working out a successful rental contract under time and financial constraints can be extremely stressful, to say the least.
And at least right now, if you pick the wrong renter who ends up with similar financial problems due to COVID, you can’t evict them if they don’t pay rent. Then you are in worse shape that you are now. So while this is an option, it is not one we would recommend to anyone.
Work With the Lender
Working together with the lender on a refinancing plan suited to meet both of your needs is another thing you can do if you can’t make mortgage payments in Grandview. You will need to advocate for yourself in this matter, as it may take convincing your lender that you are dedicated to doing everything within your power to uphold your financial responsibility. Reach out to your lender should you come to realize that your budget has new limits that cannot manage the current mortgage payments. Right now many lenders have programs in place for borrowers affected by COVID and the fall out from COVID.
By taking the first step, your lender can work with you to see if you might be able to request forbearance that would relieve you from having to make mortgage payments right now while you seek a new job or work to get your home sold. Just remember that with forbearance that the payments will come due and not making them will still probably affect your credit.
It may be with lower interest rates you could refinance to get a lower payment. And if you have fallen behind and owe more than your home is worth, taking into account the cost of selling, consider approaching your lender with a short sale. You’ll want to be aware, with the option of a short sale, you could end up owing the difference of what your home is sold for and the amount remaining on your mortgage note, which is known as a deficiency judgment. If the lender can not work an arrangement out with you, based on your situation, there are other programs you may wish to explore with the federal government. Naturally, this process will involve meeting certain qualifying criteria.
Selling
Selling your property on your own, rather than opting for a short sale, is another option you can take if you can’t make your mortgage payments in Grandview. Just keep in mind that you have to be able to sell your home for what you owe and any costs associated with selling.
We have many articles here on our articles page aound what it costs to sell a house on your own For Sale by Owner vs Hiring a Realtor. And the best option for you may vary. If your home is in great condition and does not need much in the way of updates and repairs, FSBO or listing with the realtor will net you the most money. But if your home is in need of repairs and updates, when you figure in costs for these on top of selling costs and the time needed to sell a fixer upper, you might net a better over all transaction by selling directly to a cash buyer.
If you want to find out what we might offer you for a quick closing as well as what our sister company Realty Resource might net you with a listing, give us a call at (816) 408-3600 or send us a message today.