The Stress of Falling Behind on Your Mortgage—And How to Find Relief
Few things are as stressful as falling behind on your mortgage. Whether due to job loss, illness, or unexpected expenses, missing payments can feel overwhelming and isolating. If you owe more on your home than it is worth, the pressure can be even greater. But you are not alone, and there are solutions that can help you regain control and move forward. Joyce and Cathy at The Joy Team have been selling homes since 2005, which means we sold through the Great Recession, and have helped many homeowners get out from under a mortgage they can no longer afford. The reality is… Stuff happens. We can help.
The Reality of Mortgage Distress
You are not alone. Millions of Americans struggle with mortgage payments each year. According to the Mortgage Bankers Association, about 3.37% of all U.S. mortgages were delinquent as of late 2023. Additionally, over 1.2 million homes are currently underwater—meaning the homeowners owe more than their homes are worth. This situation often leads to financial hardship, credit damage, and emotional distress.
The Dangers of Foreclosure and Bankruptcy
When homeowners fall behind, many fear losing their homes to foreclosure. Unfortunately, foreclosure can have long-lasting consequences, including:
- A credit score drop of 100-160 points, making it difficult to secure future housing or loans.
- The potential eviction from your home, leaving you scrambling for alternative housing.
- A seven-year mark on your credit report, which can make financial recovery a long and difficult process.
Bankruptcy is another option some homeowners consider, but it also carries significant financial and emotional burdens. A bankruptcy filing can stay on your credit report for 7-10 years, impacting your ability to obtain new credit, buy a car, or even rent an apartment.
Short Sales: A Better Solution
A short sale can be a lifeline for distressed homeowners. If you qualify, this process allows you to sell your home for less than you owe, with the lender’s approval. While it may seem like a tough decision, a short sale often has fewer long-term consequences compared to foreclosure or bankruptcy.
Benefits of a short sale include:
- Less credit damage: A short sale typically results in a credit score drop of 50-120 points, much less than a foreclosure.
- Faster financial recovery: Many homeowners can qualify for a mortgage again within 2-4 years, compared to 7 years after foreclosure.
- Control over the sale: Instead of waiting for the bank to take action, you can work with an experienced team to negotiate the best terms possible.
How the Joy Team Can Help
The Joy Team specializes in helping homeowners navigate difficult financial situations, including short sales. With years of experience assisting distressed homeowners, we understand the complexities of dealing with lenders and negotiating favorable terms. Our goal is to provide a stress-free, dignified solution that allows you to move forward with confidence.
But there is something else… We have been in your shoes. So we get it. It’s frustrating, stressful and even humiliating. But it’s not the end of the world. There is a way out and we can help. While we cannot offer legal advice, we can guide you through the process and get you in contact with an attorney for a consultation about your rights and options. We can also negotiate on your behalf with your lender. If the lender is open to a short sale we can facilitate the process from listing your home to handling the purchase process. It’s not like a normal real estate transaction and you need a real estate agent who understands the process.
If you’re struggling with your mortgage, don’t wait until foreclosure is your only option. Contact Joyce and Cathy at The Joy Team today to explore if you qualify for a short sale and how a short sale or other solutions can help you regain financial stability and peace of mind.
Remember, you are not alone—and there is hope.
