You’ve been making mortgage payments on time without fail. But your car suddenly breaks down and it’s not covered by your insurance. Or a pipe bursts and now your basement is flooded. Next thing you know, you don’t have enough money left to pay the mortgage for the month. What do you do?
Here are your possible options:
1. Dip in your emergency fund
The beauty of having an emergency fund is that you can still make payments if your monthly budget wasn’t enough to pay all the bills. If you have an emergency fund, take out the money you need to make your next mortgage payment. Otherwise, you may have to use your savings.
2. Speak with your lender
Most mortgage loan companies in Seattle and other places are more than willing to help you in times of need. If you know you’re not going to be able to pay your mortgage the next month, talk to your lender to find out about your options instead of waiting for the late payment notice to show up in your mail. They may allow you to defer the payment, especially if it’s only for a month or two.
3. Sell your assets
Do you have a few valuables that you can sell fast? Put them on the market before your next mortgage payment is due! You can also try pawning your items so you can buy them back after you get your budget back on track.
4. Defer another payment
If you can defer another bill, such as your auto loan or credit card bill, you can use the money to pay for your mortgage instead. This might not be an option if you have a lot of other debts, but you can consider not paying another bill for this month if you don’t want to miss a mortgage payment.
5. Borrow money
Not the first option you should choose, but if you know someone who can lend you money with no interest, try to borrow cash to make your next mortgage payment.
6. Ask for a forbearance plan
Are you not going to be able to make payments for more than a month or two? If this is the case, ask your lender if they can give you a forbearance plan. With this plan, you can make zero or reduced payments until you can pay the mortgage in full again.
7. Amend your budget
If you had to make a large and unexpected expense this month, you might have to adjust your budget so you can still pay the mortgage. The next few weeks might be rough, but at least you don’t miss a payment.
8. Take out a personal loan
Do you have huge repair bills or medical expenses on top of your mortgage? If you don’t have enough savings or money in your emergency fund to make ends meet, you can consider taking out a personal loan to pay everything else, including your mortgage.
Don’t wait for your lender to call you about your late payments. If you don’t have enough money to pay the mortgage this month or the next, these are the first options you can consider.