Needing money for a mortgage payment is not a fun position to be in, to say the least. Missing mortgage payments can negatively impact your credit and in the most extreme scenarios, leave you homeless. With 1.4 million houses being foreclosed on in 2013, this is something far too many people have to face. Having a family member go through this situation, I know it can be highly stressful.
If you need money for your mortgage payment, know there are various forms of help available. Taking action, however, is key to getting that help.
Don’t Avoid Your Lender
The stress of not having money for your mortgage payment can lead many to want to avoid it altogether. Don’t give into that desire. It’s not a solution, and it’ll likely only make the problem worse. Instead, seek out your lender and be transparent with them. In many cases, you will likely find they have a grace period up to the 15th of the month.
After the 15th, you’ll likely run into a late payment penalty; at 30 days past due, your credit score will take a significant hit. By contacting your lender directly, you can enlist their help and enquire about the possibility of a loan modification or refinance, making your mortgage more manageable.
Know Where to Find Help
If you need money for your mortgage, just know that there are various forms of help available, including some government programs. Through the U.S. Department of Housing and Urban Development (HUD), you might be able to qualify for services like a loan modification or forbearance. A HUD counselor can help determine which option is best for you.
Outside of government assistance, charitable organizations offer various forms of mortgage assistance. Some of those organizations are:
- Catholic Charities. Depending on the city you live in, Catholic Charities offers a variety of programs to assist with housing/mortgage needs including acting as your HUD advocate.
- Volunteers of America. Volunteers of America offers similar programs to Catholic Charities, all meant to help those in need of housing assistance.
- Local charities. As with Catholic Charities, there are a variety of local and religious charities offering housing assistance. If you’re in need and unable to locate them, do a simple web search to see what’s available in your area.
Get a Personal Loan
If you need money for a mortgage payment, one possible solution would be seeking out an unsecured personal loan. Honestly speaking, this would be one of the latter options I’d consider but it could work if you’re also dealing with other debts that are limiting the amount of money you have for your mortgage payment.
Through an unsecured loan, you’d be able to consolidate debt, which might allow you to free up cash for your mortgage. Each loan consolidation company has its own loan qualifications and requirements, but a consolidation company could help you find overall debt relief. Again, I’d look towards other money saving or income producing options first, but unsecured personal loans can be a justifiable option for many.
Finding A Long-Term Solution
Regardless of if it’s a one-time occurrence or an ongoing problem, it’s important to find a long-term solution to the overall problem. The key here is to do all you can to avoid foreclosure. The timeframe will vary by state but usually starts between the 60 to 90 days late mark. If you do not have a quality solution in place, this is something you’ll want to avoid.
If you’re in this situation, consider some of the following alternatives:
- Taking on a roommate
- Cutting back on expenses or finding ways to make more money
Though it can certainly be a stressful time, don’t let that hold you back from finding solutions to avoid further problems in the future.
There are many reasons why you may need money for your mortgage payment. Act wisely by finding a long-term solution.