Dealing with an Unwanted Rental Property can be a difficult task. A mortgage is a loan from a lender to pay for your property. It is often very large and means that you have to make regular payments until it’s paid off.
The cost of living in Arizona has been on the rise, which is evident with the increasing mortgage rates. This has caused many people to fall behind on their home mortgage payments.
Falling behind your mortgage payments comes tied with so many problems. In this article, we discuss these cons so that you know what you’ll run into if you fall behind your mortgage payments.
It Hurts Your Credit
Your mortgage lender will report you to one of the major credit bureaus if you fall behind in making a mortgage payment.
This means that your credit score can take an incredible hit with just one late payment.
You’ll Pay Late Fees And Other Penalties
If you miss your first Mortgage loan payment, then your lender should give you a grace period of 15 days. If these days lapse without any commitment from you to make the payment, then you’ll be charged a late fee.
These fees are quite substantial (2%-6% of your monthly payment), not to mention that you may face other penalties depending on your lender’s terms.
You Don’t Qualify For A Mortgage Loan Modification
It’s almost impossible to get a mortgage loan modification in the event of a missed payment.
While under normal circumstances, a mortgage loan rescheduling can save you from damaging your credit score or foreclosure, this benefit is lacking if you’re behind on your payments.
It’s Stressful And Time-wasting
Dealing with a lender trying to collect on late payments is stressful and time-wasting.
You get constant visits from your lender, and you can be sure they won’t stop until you make the payment. This can compromise your peace of mind and is not worth it.
It Is Challenging To Sell The House
It’s hard to find someone willing to buy your house if you’re behind on mortgage payments.
If you’re behind on payment, it also means that you can’t afford to do repairs needed for the sale of the house. If repairs aren’t done, selling the house becomes even more complicated.
Can Lead To Foreclosure
The most serious consequence of being behind on mortgage payments is that it can lead to a foreclosure.
A foreclosure is a legal process where a bank or lender takes back a home from the owner. The homeowner loses their property, and the lender gains the title.
Under federal law, a foreclosure happens if a homeowner is more than 120 days overdue on mortgage payments.
If the lender takes the house from you, you’ll no longer have anywhere to live, and the situation can hit you hard.
Conclusion And Why You Should Sell Your House To A Cash Buyer
Being behind on mortgage payments is stressful and overwhelming. For most homeowners, it’s a worst-case scenario that they hope will never happen to them.
But if the worst happens, you should consider selling your house to a cash buyer.
Some benefits of selling your house to a cash home buyer include:
- No service fees, closing cost, and commission cost
- No expensive inspections or fees
- ZERO obligation
- Fast home offers
- No excessive paperwork
- You can get your cash in hand within a week
A cash home buyer also buys houses as-is in any condition, so there’s no need for repairs or renovations.
So, are you in the process of selling your house in Phoenix or anywhere in Arizona? At EZ Max Offer, we buy houses in Arizona for cash and process fast home offers for anyone who wants to sell their unwanted rental property in Arizona.
