What to do when you’re behind on your mortgage

On Behalf of | Sep 16, 2023 | Bankruptcy |

Failing to make mortgage payments on your Florida home could result at the very least in collection calls or letters. It could also result in late fees or other financial penalties that can make it even harder to stay current on your loan. Depending on the terms of your mortgage, your lender may move to foreclose on the property after a single missed payment.

Talk to your lender

Ideally, you will call your lender the moment that you don’t think that you’ll make your next mortgage payment on time. There may be a number of debt negotiation tactics that can help you manage your payments without the threat of losing your home. For instance, you might offer to roll your missed or late payments back into the loan. It may also be possible to make interest-only payments for a period of several months.

Consider selling the property

If you have positive equity in your house, you can sell it and use the proceeds to pay off your mortgage. In the event that you have negative equity, the holder of the mortgage may still allow you to engage in a short sale. Any outstanding balance that remains after the sale goes through is forgiven and you walk away without a foreclosure on your credit report. However, it is worth noting that a short sale can still have a significant negative impact on your credit score and creditworthiness for several years.

An inability to pay your mortgage may result in losing your house and the equity that you have accrued in the property. Filing for bankruptcy, selling the home or negotiating alternate payment plans with your lender may make it possible to get control over your debt obligation.