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6 things that can help you pay your mortgage loan

[Oct 7, 2010.]

 

Can't pay your mortgage? Here are six things you can do to stay in your home. Warning: Some of these suggestions may require you to make some very tough decisions or make big sacrifices. If you're up for the challenge, keep reading.

  1. Buy some time. Try to negotiate a suspension of mortgage loan payments for a period of time. In extreme cases of financial hardship your mortgage lender may be willing to refinance your home loan to give you a lower mortgage rate. It may take several attempts at contacting your mortgage lender to get the deal you need.
  2. Take in a boarder. Does your sister, your cousin or your best friend need a place to live? If that individual has a job that pays a regular income, consider asking them to bunk with you. Make sure you have a formal contract that covers all the terms and conditions of your rental agreement, including the amount of rent and monthly due date.
  3. Cut back on utilities. Get rid of cable TV subscriptions, Internet connections, cell phones, and other monthly services you can't afford. Put the money you would have spent on these services toward mortgage payments. Take advantage of free movie rentals and Internet at the library, as well as other services in your community. Look for free entertainment and other outings so you won't miss the absence of cable and can spend qualify time with family and friends.
  4. Cut back on memberships. Extracurricular activities for you and your kids can add up. Drop that gym membership, especially if you never use it. Instead of signing your kids up for sports and other activities you can't afford, make a pledge to spend more time with them.
  5. Get a second job. Do whatever you can to get more money coming in. If you are unemployed, you may need to be willing to accept a lower level of pay than on your last job so that you can pay your bills.
  6. Sell one of the cars. If you have more than one vehicle, sell one and get by with only one car. Selling a car with loan payments and insurance can put more money in your pocket each month.

Find mortgage help

There may be other ways you can cut back on expenses. You may need to make some major changes in your lifestyle if you want to stay in your home. If keeping your house is impossible, try to get your mortgage lender to agree to a short sale if you can't sell your home for enough to pay the mortgage. A short sale occurs when the mortgage lender allows you to sell your home for less than what you owe on your home mortgage. A short sale can get you out of a troubled mortgage loan, but there will be a hit to your credit rating.

 

About Author:

Francine L. Huff is a freelance journalist and the author of The 25-Day Money Makeover for Women. She has appeared on a variety of TV and radio shows.

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