It's probably obvious that the most horrible gut wrenching feeling any homeowner can get is the threat that you might lose your home. When you can’t keep up with your mortgage payments for any number of reasons, an anvil appears of your head. This weight represents the seriousness of home repossession that dangles over you, and no matter how hard you try to close your eyes and wish it away, it's there to stay.
Or is it? Repossession is by no means something that lenders will ever take lightly. For homeowners, it's by far the scariest thing possible because it could mean you end up living on the streets homeless. For that reason, it's easy to get carried away with worry and let it gradually consume your life. Increasing your stress and depression aren’t going to help you in the slightest. The first hurdle you must jump over is the panic that rushes over you when you get your first late payment notice from the mortgage lender. After that, make a cup of tea and sit down and think through your options clearly.
Enemy at the gates?
It cannot be stated enough that you should not see your lender as an enemy at the gate. In fact, far from it, they want to help you as best they can. Remaining in full and open contact with the mortgage lender is your first and foremost action. When life is getting tough, and you know you won’t be able to make a payment, take concise action to communicate this. Even before the payment is due, either phone or write a letter to the lender notifying them why your payment is going to be late or incomplete. The response you get may well be uplifting as lenders will offer you advice. There is a range of options that your lender can activate giving you enough time to regroup. They can temporarily lower the monthly payments, so it's more affordable for you to make them in the first place. Obviously, any amount they cut temporarily will be planted back on to the overall money owed. The main objective is to keep them in the know so they can react and give you options. Remember, no lender really wants to up-and-ready sell your home, because they would lose money. They would have to sell it quickly to get some of the money back that they lent you to buy the home in the first place.
Creating a buffer
Before you sign on the line for your mortgage, there are a couple of protective measures you should definitely consider. Your health and wealth may not always be the picture of health, so in case anything that’s out of your hands affects you personally, you should plan to keep making payment. Many mortgage lenders are well aware of this, and so they may give you an option to take out a little more money than you actually need to. If you do decide to take this option, the extra pile of cash you’re given can be immediately used to make a series of payments in advance of their due date. This means you already have a buffer zone. In case you need the money urgently for something else such as healthcare operations, flood damage repairs, car breakdown repairs etc, you’re already a few payments ahead.
A protective cloak
Just a like a buffer, there’s another tactic you can use to aid you in your battle against repossession. Should you fall ill or get seriously injured in an accident like a car crash and be unable to work, a mortgage payment protection insurance is a very useful tool. For those who may be hesitant about this and believe they could always apply for government assistance, think again. Not everyone is eligible to receive help from the government, but even if you do get accepted, the financial support will only cover the interest on the mortgage; not the actual monthly payments. An MPPI will actually cover both, hence the popularity of this type of insurance.
Monthly payments from this type of insurance are going to be capped. So if you have an a large mortgage, you will need to cover the surplus. Also, take heed of the fact that many MPPI policies will only cover you for one whole year of mortgage payments. It's very rare that you MPPI policies will pay out for more than one year so in order to cover all sides, you could take out more than one plan if you’re capable of doing so. In the event you cannot make payments, you can activate your insurance plan, and it will make the mortgage payments for you. This gives you time to gather yourself, heal up, find a new job etc, before making payments by yourself again.
Emergency selling option
Another option is the lift the monkey off your back all together. Fast house sale services like Mark King Properties can actually stop the repossession of your home by taking the equity out of it. The main concern for the lender is that they still own your home and if you can no longer pay your mortgage, they’re taking all the risk. If you don’t make the payments, they need to sell the home so they can stop any further losses made by giving you're the mortgage in the first place. As homes are collateral, they are fair game in the eyes of the lender, but repossession is their last resort. Mark has bought over 700 properties, so it's easy to imagine the expertise he has in this area and he can make you an offer on the same day he visits the home. They'll factor in the market price and the condition of the home to give you a competitive price. Since he himself takes care of all the conveyancing and solicitor payments, you just have to sit back and let him do the work. He buys in cash so the home can normally be sold within seven days or 2 weeks at the most. This is obviously a last resort, but if you're at the final stages it might be worth considering.
Just the mere thought of the repossession of your home is frightening. So long as you have a mortgage, you have a woodpecker in the back of your mind, always reminding you that your home hangs by a shoestring. But it's not an unstoppable force; there are so many options out available to you to maintain your mortgage payments. These are just some of the options you can choose when you’re in trouble, speak to your lender for more advice if you’re having issues making payments.