If you’re suddenly facing drastic financial conditions that are beyond your control, don’t ignore it! You’ll likely want to take prompt action if foreclosure is an imminent threat – this legal process can bring serious long-term damage economically and psychologically. There are steps you can take to bypass foreclosure, we will go over 3 things you can do if you can’t make your mortgage payments in Tempe.
Turn Your House Into a Rental
If you’re struggling to make mortgage payments in Tempe, renting out your property is a viable option. It’s not ideal; it means having to move from your current residence and settle elsewhere with lower expenses. However, that doesn’t necessarily mean the new location won’t be just as charming, or maybe even more so! As the landlord, it is of utmost importance to be aware that you will still remain accountable for any and all maintenance concerns or unexpected repairs. You must factor these costs into your rental fee in order to compete with other similar rentals on the Tempe market and stay competitive. An additional challenge of renting out your home is that there may be no certainty on how soon you’ll find a reliable tenant. With the added financial burden of a second residence, it can become incredibly overwhelming to agree upon an ideal rental arrangement while operating within limited time and resources.
Work With the Lender
If you find yourself unable to make your mortgage payments in Tempe, don’t panic! You can always work together with the lender on a refinancing plan that serves both of your needs. However, keep in mind that advocating for yourself is essential! Eloquently demonstrate to them how serious and invested you are about preserving financial responsibility. Reach out to your lender should you come to realize that your budget has new limits that cannot manage the current mortgage payments. To begin your journey to financial freedom, reach out to your lender and ask if refinancing is an option for you. If not, consider proposing a short sale as another viable choice. If you decide to pursue a short sale, it’s important that you be aware of the possibility of owing your lender the difference between what your home is sold for and how much remains on your mortgage note, commonly known as a deficiency judgment. If no agreement can be made with the lender based on all available options, there are other programs offered by the federal government which may provide assistance. However, please remember these will require meeting certain eligibility requirements in order to qualify for them.
If you’re behind on your mortgage payments in Tempe and are contemplating a short sale, there’s another option: selling your property independently. While you could list your home with an agent, or sell the property as for sale by owner (FSBO). When considering foreclosure, three main issues should be taken into consideration. Firstly, the timeframe of a sale cannot be guaranteed. Secondly, there is no assurance that your property will ever sell in either market. Lastly and most importantly, when working with an agent or selling as FSBO (For Sale By Owner), you must have the necessary funds to cover all associated expenses. Even if your home is relatively new, you should expect some repairs to be necessary. Additionally, there will be costs associated with inspections, appraisals and any other problems that may arise during the process. Furthermore, it’s important to consider marketing expenses as well. If you choose to enlist a real estate agent for help in selling your home, then brace yourself for their hefty commission rate plus all of the standard fees related to completing the transaction! To forge a successful relationship with your lender, consistent communication is essential. Be sure to keep them updated on the steps you are taking and what action plan you have chosen in order to reach an effective resolution. Your lender will be expecting tangible results from your efforts in order for this process to progress quickly. For this reason, you may wish to consider the time and money-saving benefits of a direct sale of your property, which more often than not, takes place as an “as is” transaction.
Ready to resolve the financial strain you are under, avoid all of the headaches and costs of listing your home, and be assured of a sale, in a very short amount of time? The best thing you can do if you can’t make mortgage payments in Tempe is to sell it to LRT Offers directly! Learn more about how we can help you by sending us a message or giving us a call at 602-362-4742 today.