Assessing Your Situation
It’s important to take regular stock of your finances. You have certain responsibilities – including paying your mortgage and maintaining your home – and it’s important to be aware of your financial health.
To help gauge your financial health as a homeowner, ask yourself these questions:
- Can you afford routine home maintenance, such as servicing your air conditioning and cleaning the chimney?
- Are you able to pay for large, unexpected repairs – such as a leaking roof?
- What would happen if you had a short-term hardship such as a reduction in pay? Would you still be able to pay your mortgage?
If you answered “no” to any of the above, it’s important that you understand the warning signs of foreclosure and reach out for help as soon as possible.
Housing counselors can be great resources for help if you’re finding yourself maxing out your credit cards, unable to pay your bills on time, or using credit cards to pay for day-to-day expenses. They may be able to help you get back on track before you are facing issues with your mortgage.
If you find yourself facing a life change that impacts your ability to pay your mortgage – such as unemployment, a major illness, or divorce – reach out to your lender as soon as possible. Your lender wants to help you with your mortgage; they do not want your home or the expenses that come with foreclosure.