*This is a collaborative post.

 

When experiencing financial difficulties, it can become a struggle to pay the mortgage. It's one of the most important payments to meet each month, if not the most important, but there are also other expenses that may need to be taken care of. No one wants to lose their home due to struggling with money, but many are unsure about how to protect it and ensure housing security. Fortunately, there are several things to do both to avoid falling behind on mortgage payments and to keep a home if difficulties arise. Keep reading to find out what you can do to protect your home.




Save an Emergency Fund

When you're in times of financial stability, taking the opportunity to save is important. An emergency fund is there for you when you have unexpected expenses, but it can also come to your rescue if your income gets cut. When you save an emergency fund, think about it in terms of how much it will cover. Will it pay your mortgage payments for a year? Perhaps it will cover all of your expenses for six months. When you think about it this way, it can give you a sense of security. You have a good idea of how long you would be able to survive if your income was lower.



Create a Sensible Budget

Another way to prevent any difficulties in the future is to create a budget that works for you. While budgeting every single penny might make it seem like you can afford your lifestyle, it's important to think about what could change. What if any of your expenses suddenly increased or your income went down. Your mortgage payments, for example, could increase if your interest rate goes up. You need to leave some "wiggle room" in your budget so that you can cover any changes in your expenses. If you don't, you could be left struggling to make up the difference.



Understand Your Mortgage

Everyone who has a mortgage should understand it and how it works. Firstly, you need to know what sort of mortgage you have. You might have a hybrid adjustable rate mortgage, an adjustable rate mortgage, or a fixed rate mortgage. You should know if you should expect payments to increase and when that might happen. Find out whether you can remortgage to a fixed rate loan if an increase in your payments might become difficult for you. People who start with a hybrid adjustable rate mortgage often remortgage when the fixed rate period is over.



Keep In Touch with Your Lender

Staying in touch with your lender is a must if you think you're going to fall behind on payments. It won't help to bury your head in the sand and pretend that nothing is happening. When you contact your mortgage provider, they can help by suggesting solutions that might help you. You might qualify for a loan modification if you got your mortgage before 2009, or you might be able to benefit from refinancing. You could also agree to a date when you will pay any past-due payments, or your lender might help you with a repayment plan.



Seek Compensation

Sometimes you can experience financial difficulties because you are unable to work or because one of the main earners in your household has died. When this happens, there is a chance you might be able to seek compensation. If you're injured because of an accident caused by another party, they might be responsible for paying you compensation. If a family member has died due to someone's negligence, discuss your case with a skilled wrongful death attorney. These situations are already difficult to deal with before factoring in money problems. You might be able to improve your situation by seeking compensation.



Address Other Debts

If you're dealing with other debts, sorting them out can give you some more breathing room where your mortgage is concerned. You shouldn't stop paying your mortgage if possible, but you should also turn your attention to your other debts. If you can deal with them, it can make it easier to keep paying your mortgage payments. Consider solutions such as debt consolidation or debt management plans, which can help you to simplify your debt. SoFi offers debt consolidation loans at https://www.sofi.com/personal-loans/credit-card-consolidation-loans/ which may fit your needs. And of course (and unfortunately), bankruptcy is an option for some, but it's usually a last resort solution.




Your home might be the first thing that you worry about when you're having financial difficulties. But you can protect it both in advance and when you're struggling.