What To Do If You Can’t Pay Your Mortgage

Getting notice of default for one or more missed mortgage payments can be extremely stressful for an individual or family. Avoid foreclosure by seeking mortgage assistance options like forbearance and loan modification. PSG received calls from clients during the pandemic saying ‘ I can’t pay my mortgage, what should I do?” If you have missed payments or are behind on your mortgage, here are some steps you can take-

Reach out to Your Lender Immediately

If you are concerned about your ability to pay the monthly payment then make a call to your lender. Ask for mortgage assistance early on to get better options to choose from. Have the details before making the call:

    Estimation of current income
    Current expenses|
    Recent mortgage statement
    Documents to verify the finance problem


Mortgage forbearance can delay or reduce mortgage payments for a defined period. Draw an estimated time of forbearance based on your situation. However, interest will increase during forbearance. Even though forbearance affects your credit score, it will help you avoid missing
payments or foreclosure. You must pay the decided amount every month.

Loan modification

In the loan modification process, the lender agrees to new terms for your current mortgage without refinancing. This could involve reducing the interest rate, extending the term, altering the type of loan, or adding any back payments. The main aim is to avoid foreclosure and make
the monthly payments affordable for you. It would affect your credit score but not as severely as a foreclosure. Without having gone through forbearance, you’ll have to present proof of financial problems. It is usually for homeowners with expected default or who are already due on their mortgage payments.

Here are some tips that can help you-

    * Document details: Note down the date, time, and the bank officials you spoke to in regards to mortgage assistance. Save all messages, including the documents you submit to your lender.

    * Follow deadlines: Mark your calendar, or set an alarm day before your payment date. Have a reminder set for the trial payment periods during a loan modification, and write  down any due dates that your loan provider gives you.

    * Keep up your living arrangements: Don’t decide to move or rent out your home, as this can risk mortgage assistance. Check if the loan application required the property to be your primary residence.

    * Look out for outdated information: Many websites have outdated details like expired government mortgage assistance programs, no longer available to the general public. Remember to call on their helpline or contact the bank officials you know. They can provide you with the right information.

    If foreclosure is right at your door, contact Property Solutions Group to sell your home within 30 days. The company is among the most trusted Real estate investors in Baltimore and MD. This is an easy & straight forward process to sell your property fast without any added costs. Contact our team to get a fair all-cash offer.