The short answer is yes! Forbearance isn’t a way to make your mortgage disappear entirely. Instead, it is a way for homeowners to delay or reduce their mortgage payments, while avoiding late fees and hidden costs. In addition, it is a way to stop the foreclosure process, without having to pay exorbitant costs or walk away from the property entirely.
How to Repay Your Mortgage
Forbearance gives you the time to (hopefully) get your finances back on track. For many, this can mean recovering after an illness, a natural disaster, or the aftermath of COVID-19. In a perfect world, the homeowner would get right back on track once the forbearance period is up. Unfortunately, however, this isn’t always the case. Many homeowners find that repaying what they owe is difficult, and a loan modification will be needed if they wish to stay in the home.
If you were delinquent on your payments before going into forbearance, it’s important to get caught up on them as quickly as possible. Delinquencies on your credit report, along with claiming forbearance, can make it a challenge should you try to refinance your loan. If you want to get caught up on your payments, create a plan, outlining exactly how you will do it.
What to do if You Need More Time
Many lenders will work with you to extend your forbearance period. Typically this will be in periods of six months. Keep in mind that your lender wants to work with you to get the loan paid off. They don’t want to take a loss or deal with the foreclosure process. If you can show in good faith that you will be able to pay, your lender will likely work with you to find a solution that works. Just like you, they want to get those payments back on track!
What if You Still Can’t Pay Your Mortgage?
Another option for Texas homeowners is to work with their lenders to create a loan modification plan. This modification can change your loan terms and interest rate, thus reducing how much you have to pay each month for the property. Keep in mind that this is a negotiation, and if you don’t like the terms put in front of you, you don’t have to accept them.
Should You Sell Your House?
At some point, it’s important to consider what the property is costing you and if it’s really worth it to continue to own. Maybe you are living above your means, or maybe you have inherited a property that has become a bit of a nightmare. If you are struggling to pay your mortgage month in and month out, it may be time for you to consider selling your Texas property. Listing with a local agent can be very beneficial, but may cost you time and money. Lone Star Home Buyers of Texas will buy your house outright, closing in only a few short days. Our process makes it easy to sell your house in Austin no matter what you owe or when you need to close.