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One of the most daunting experiences of adult life is the anxiety-producing home loan.
The constant hope that you will be able to maintain your income so you can make your mortgage payments on time can create a tension-filled life.
Many of us sit with mountains of stress over the complications of maintaining and owning a home. It’s not uncommon to avoid financial problems by just hoping it solves itself if we keep making payments. Yet even when we’re avoidant, there’s always that constant worry that if things go wrong it could lead to the possibility of losing the house — despite our best efforts.
If your mortgage provides more feelings of anxiety than security, it might help to know about the many helpful ways to reduce the stress of having a home loan. Yes, if you are in a bad spot with your mortgage, there is a light at the end of the tunnel.
And it’s not necessarily the headlamp of an oncoming train.
An Alternative to Foreclosure
There is an option available to homeowners who are no longer able to afford payments for any of several reasons — a way to get out from under the debt that their changing economic situations have left them with.
If you are suddenly facing an uncertain and financially insecure future and still owe more than your house is worth, foreclosure isn’t the only way out. In cases where you believe a foreclosure to be around the corner, a slightly better options is short sales.
In the Ohio Valley, specialists like those at the Ohio Short Sale Center can help you determine if a short sale is a plausible option for you as a homeowner. You will have to move when your house sells, but it won’t be because the bank is kicking you out.
In a short sale, the bank allows you to sell your home for less than you owe. The bank is taking a loss and so are you, but it’s better for the both of you than going through the losses that come along with foreclosure.
Additional Financial Relief Options
More often than we realize, the value of homes can quickly change for several reasons, leaving many homes with a substantially reduced worth and owners with an existing loan that now exceeds the value of the property. Borrowing against your mortgage or property can also put you in a similar situation.
Or simply losing your job due to a pandemic.
You could consider a loan modification. This should be considered as an approach early on, and could involve options such as temporarily reduced interest rates, switching mortgage lenders, or restructuring of payments so the amounts become more manageable during the hardship you face.
Temporary suspension of mortgage payments is sometimes an available option, but all of these options depend entirely on your financial lender.
Whatever road you take, do so with the advice of a financial professional who knows the ins and outs of your entire, individualized financial situation. You can get the advice of a HUD-approved financial counselor for little to zero cost.
Learning Is Better Than Worrying
If you ever find yourself stressed out over your home loan or any other part of your financial situation, remember that knowledge is power. In the era of the internet, we’re lucky enough to live in a time when knowledge is literally at your fingertips.
You don’t have to be great at trigonometry to ‘get’ personal finance, but putting effort into understanding how our finances work is something we can all benefit from greatly.