If you are a single mom in financial trouble and are worried about paying your mortgage, you are not alone since more and more people nowadays are finding it tough to cover their monthly expenses. It is simply becoming a fact of life nowadays. Nevertheless, there are some things that you can do as a single mother to avoid having your house go into foreclosure, even if you might have missed a few mortgage payments.
That is correct; you can avoid going into foreclosure, and here is some advice on how to do it.
Get in touch with your lender.
This is key because if you have missed payments or are on the verge of missing payments, you need to let them know what is going on with your financial situation. By letting them know what is going on, they will make a note of it in your file and may even give you some leeway when it comes to making those payments. If you do not let them know, then there is a good chance that when you do finally get in touch with them about what is going on, it will be too late for you and them to work something out in terms of possibly changing payment amounts, dates, etc. So be proactive about your situation.
Try to refinance your home.
This is something that kind of coincides with contacting your lender, due to the fact that in order to refinance your home, you are going to have to work with your lender to do so. What you have to do is apply with them to refinance your mortgage loan. Basically if you are finding that your mortgage payments are too high, you can get them lowered by refinancing your house mortgage to get a lower interest rate. By dropping the interest rate on your house mortgage by a percent, you could save almost $200 a month and use the money you save to pay for some of your other expenses, like utilities or credit card debt. When going this route, make sure that you have a steady income, and to help your cause, it would not be a bad idea to get an additional part time job.
Seek the help of a finance counseling agency.
A finance counseling agency can help you put together a budget when it comes to paying your monthly expenses. In addition to that, probably the best thing about seeking the help of this type of agency is how they will actually negotiate with your lenders and any other people that you might owe money to to come up with a game plan on how to narrow down your debt to help you pay things off.
Try to get assistance to pay your mortgage.
If you have no way of making any extra income and simply cannot afford to pay your mortgage, there are financial assistance opportunities available to you. For instance, there are assistance programs in some states and cities that assist moms on a fixed, low income budget pay for things. Now they may not pay your mortgage, but they might help you in other areas, like paying your utilities or giving you money for groceries so then you can afford your mortgage.
When you can continue to live comfortably in your home, you will be glad that you did.