What happens if I can’t pay my mortgage?
While most mortgage lenders and banks understand that life happens and it’s hard to make repayments on a loan, you still need to pay your mortgage. If you cannot pay your mortgage and miss too many repayments, especially without contacting a lender or representative, your bank can repossess your house.
As soon as you’re home is repossessed, you will not receive any money made to the home as repayments. When you cannot pay your mortgage and it is repossessed, this can detrimentally affect your credit score and will show on your credit report. The bank or lender also will feel distrust towards you and it can be harder to receive a loan. When your items are repossessed and the items are not worth what you owe, your bank or lender can sue to receive the rest of the money.
Before the situation gets this bad, it is best to seek help from your lender or bank directly. Each lender has financial assistance programs that can help you find unique ways to keep your mortgage and high credit score. Sometimes, it is easier to refinance the loan if your credit score is high and you are making a good income.
Refinancing the loan to a lower interest can decrease the interest you pay. If your financial situation is temporary, there are also temporary solutions that a mortgage lender can provide like freezing repayments for six months. If freezing repayments does not help, you will need to think about other solutions like selling your home and taking a small profit.
Can’t Pay Loan Conclusion
Mortgage House experts are lenders who care and want to provide excellent service. Our lenders understand that life happens, and it is not always possible to pay the mortgage.