When talking about money, the best way to enjoy its existence is by spending only for what is necessary and then saving up for the future. Take it from most families who are suffering financial setbacks and they’ll attest to such statement. With the case of refinancing a home loan, you should also know that every decision you make should be for you to save rather than spend. This way, you will be able to accomplish your long term goals in a shorter period of time, also given the luck that you’ll be getting. Thus, here are 7 helpful tips when you are at your wit’s end trying to patch things up with your mortgage.
(1) Singapore citizens are lucky enough that the Housing Development Board has existed as early as the 1960’s to build and offer low cost flats to the low income group. This form of government support is beneficial especially for the less fortunate who has to struggle in reaching their goal of owning a property.
(2) In the past, when you talk about refinancing your loan, you can do so and effectively lower the interest of your debt or lessen the monthly repayment amount. However, present times have changed the scheme as well, thus posing a difficulty to most. If your credit files show of late payments, your home is declining in value or that you are suffering from a seasonal/unstable income, you might have it harder indeed. While for those who are free from such setbacks, they can then approach a lender and assess the different refinancing options in order to choose the most appropriate one. Together with this, they should also learn the current rates in the market.
(3) There are applicants who might experience a loss of income or bear with a seasonal one that is always uncertain as to when it will work out again. This is the reason why forbearance is worth asking about since lenders might actually consider lowering or eliminating some mortgage payments for the benefit of those who are struggling financially, and with an apparently reasonable cause. For this tip, humility is required because such favor is a great privilege to let you off the hook and allow you to breath for the time being. Again, it is worth asking about because the security of your long term goal is the topic at hand.
(4) With the current loan that you have, you can actually consider changing the terms if allowable by the lender or better yet, if it was agreed upon beforehand. What are the changes that you can do? You can lessen the amount that you have to pay but in return, the penalty would be a prolonged loan term. Meanwhile, you can also opt to pay off any delinquency in future payments. This option is the most likely choice by people because money really is hard to earn and struggling financially is no easy thing. Some lenders might actually consider lowering the amount of the monthly repayment plan for the benefit of those who are still gaining their footing from all the financial setbacks they are experiencing.
(5) When you want to avoid foreclosure or repaying the lender as soon as necessary, there is no other logical option but to sell your home no matter how hard it is to let go. If the home in question is valued lesser than the actual amount of the mortgage, permission should be asked from the lender to short sale it or sell it as a loss on the current value.
(6) A deed in lie of foreclosure involves returning the title of the property and the property itself to the mortgage holder. Such is done when the debtor can no longer commit to pay off the loan and also to avoid foreclosure.
(7) Equity skimmers can be scammers, so you have to be really careful with whom you’re going to trust your property with. When facing foreclosure, you might receive solicitations from companies who will express interest in your cause by offering to take ownership or selling it for you. However, you shouldn’t give in immediately so as to free yourself from the trouble the soonest. What you should do is go for lenders who are trusted and who could give you the right assistance so that you won’t suffer further losses and regrets.