We already know that you should have sound finances before you consider buying a home so that you can avoid problems with mortgage payments in case you lose your job. But what if you’re one of the many who are already in a financial bind, having mortgage payments to make and without the financial capability to do so every month?
If you are, the first thing you need to do is face your situation right away before your debt becomes unmanageable. Sit down and make a monthly budget with the purpose of cutting down on expenses and figuring out just how much exactly you can put into mortgage payments each month. Approach your lender with your figures and ask for a reduction of your monthly mortgage payments. If your record is good, they might agree to refinance restructure your loan.
If the lowest mortgage payments are really too steep for you, you might want to consider selling or renting your place and moving to a cheaper one to protect your finances early on. It is better to cut your losses now before you lose your home without having any say on the matter.
Image via 401 (K) 2013