Falling behind on your mortgage payments might sound like a never-ending vicious cycle. However, even if things seem gloomy, there is always a way out.

Here are a few ways you can make your way through such a situation:

Call up the lender

It always helps to call up your lender to see if they’d be willing to work around the mortgage repayment plan and save you from some of the financial trouble. Foreclosure is a very expensive process to deal with. To avoid giving up your house in foreclosure, your lender will be willing to work with you.

The lender will either opt for reinstatement and forbearance or work around the repayment plan.

• The repayment plan usually works like a good option if you’ve recently dealt with a sudden financial setback. Through the repayment plan, any amount accrued in the form of mixed mortgage payments is divided over a pre-defined number of months. The amount is then added to the existing mortgage payment.

• If you’ve chosen the forbearance option, the lender might agree to either reduce or temporarily suspend the mortgage payments till you can recover from the financial setback. However, both of these options are very temporary, and you’ll eventually have to make a lump-sum payment. You only need to be able to convince the lender that the financial hardship will ease soon, and you’ll be able to make the repayments.

Loan refinance

Loan refinancing is also known as a loan modification. When you’re unable to pay off the mortgage, the lender might agree to renew your loan. The newer loan carries a longer-term and a lower interest rate. The lender brings down the payment level to something that’s a lot more affordable for you.

Borrowers often refinance their loans when interest rates fall or to gain more favorable borrowing terms. You might be able to convince your lender to refinance your loan if your credit profile has improved.

There are different types of refinancing schemes. The rate-and-term refinancing takes place when the original loan is replaced with another that carries lower interest payments. Cash-out refinancing, on the other hand, collateralizes the loan when it increases in value. When your asset becomes more valuable, you can use it to gain access to a higher value loan instead of selling it.

Sell the house

If none of the above-mentioned options work, you can sell the house. If you’re facing foreclosure, selling the house will give you quick and easy cash. This also lets you make a fresh start altogether. Other than stopping the foreclosure process, this will also ensure that there are no bankruptcy filings.

If you don’t know where to sell your house, RE-vest Investments will be glad to buy it from you immediately! We will buy the property as-is without demanding any modifications or upgrades. Get in touch, and we will get back with a no-obligation cash offer. We are buying property in Texas only.