What is a delinquent mortgage?
In light of the COVID-19 pandemic, many people are experiencing significant financial hardships. While these burdens can be felt in a variety of ways, one of the most common relates to the inability to make mortgage payments. Therefore, if one falls behind on these payments, an issue can arise known as a delinquent mortgage.
A delinquent mortgage is when a borrower fails on one or more occasions to pay their mortgage on schedule. Sometimes, in this instance, the lender has the right to repossess the home. If this happens, the home may go into what is called foreclosure.
Typically, if the homeowners haven't made their required mortgage payment 120 days after it is flagged as delinquent, then the property may go into foreclosure. While some mortgage lenders offer loan modifications to avoid delinquency and make it easier for borrowers to pay, homeowners must be aware of how to deal with this issue so their property does not enter foreclosure.
What do I do if I am delinquent on my mortgage?
While many people are looking for options to deal with a delinquent mortgage, it is important not to stress. Instead, it is a good idea to contact your mortgage provider and work out a plan. While you may discuss several different repayment options, here are a three useful ways to deal with a delinquent mortgage:.
1. Refinance
Refinancing with a mortgage lender to pay off the delinquent amount can be a useful way to avoid foreclosure. While your past due mortgage payments can be added to a new loan, the terms of the refinance may help you work your way out of mortgage delinquency.
2. Repayment through a lump sum
A lump-sum payment is when a borrower pays off a large portion of their mortgage at once. While this option may be difficult if you lack sufficient funds, it can also be helpful if you want to reduce the overall balance that is due on your mortgage and get out of delinquency.
3. Requesting a principal reduction
Requesting a principal reduction is another way to attain financial relief from a mortgage. By requesting this, one can decrease the total amount owed on a mortgage to avoid delinquency and foreclosure. While you will have to qualify for a principal reduction, being able to reduce the amount you owe on your overall mortgage can help you reduce monthly payments.
4. Selling your home
While trying to restructure your mortgage with your lender can sometimes be an effective option to relieve yourself from additional payments, selling your home is often the quickest and easiest way to rid yourself future fees. Therefore, understanding that there are ways to sell your home quickly and for a quality price in Washington DC is useful when trying to save money.
While all the above reasons are common ways to successfully avoid foreclosure, forbearance is also one of the most common options for people who are delinquent on their mortgage.
What is a forbearance?
A forbearance helps to keep your mortgage payments on hold temporarily, so that you can work to manage your money and pay at a later date. In essence, it suspends or reduces your payments for a specific time that is granted by your mortgage lender.
In order to be granted a forbearance, you will need to talk to your mortgage provider, and explain your current financial situation. From here, ask them if they offer a "forbearance" or "hardship" option.
While obtaining a forbearance can sometimes be complicated due to the requirements of different mortgage lenders, this conversation is very worth having in order to understand how to qualify for this option. In addition, a forbearance can be very helpful to prevent an underwater mortgage while you look to sell your house.
While obtaining a forbearance can be helpful to help you keep your home, it can also be helpful when you look to sell your home as-is in Washington DC. However, even if you do not qualify for a forbearance, there is still options for you to receive mortgage payment relief.
Who will buy my house with a delinquent mortgage?
When looking to sell your home with a delinquent mortgage, Congressional Home Buyers grants sellers with exceptional service, as well as the advantages provided by a fast, private home buyer in the Washington DC area. If you need to quickly sell a house in Washington DC, Congressional Home Buyers offers the incomparable flexibility of a home sales process that meets your needs. Whether you have outstanding delinquent mortgage issues or you have to sell fast to avoid foreclosure, we make the process easy.
Using these 3 simple steps, you can sell your home in under 30 days:
Submit your name, email or phone number, and address of the property you intend to sell.
You will receive an offer in a matter of minutes, but we suggest talking to one of our representatives or scheduling a walkthrough of the property to get the best offer possible.
We send you a contract and will arrange to close in as fast as five days.
Start today if you are interested and see what we have to offer!