We all have some or the other dreams that we want to achieve in our life. One of them is owning a house that gives us a space to live and create memories to cherish for the lifelong. Some of us have sufficient money to buy it and many of use borrow a loan to full fill this dream.
After going through a hazardous process of borrowing a loan, the home loan or mortgage becomes the biggest debt most home loan borrowers can ever bear, and their home is the most expensive thing they will ever buy.
Finding a right financial product and completing a home loan and mortgage is a time-consuming process. Borrowers have to work on their budget to find out what they can comfortably afford, do a deep market research to find out the most competitive rate of interest for the home loan, low fees and find out the lender with the lowest turnaround time for the credit appraisal.
Being a very tedious, time-consuming process and an expensive product you cannot afford to make any mistakes. One single small mistake can make you pay far more than what you should.
You should not feel that your home and mortgage loan has become a burden on you. Rather, it should make you feel financially secure for your whole life.
The team members of Mudrahome are here to guide you on how to get yourself out of a mortgage mishap:
How mortgage mishap happens?
Mortgage mishap can happen when you are struggling with your mortgage repayments and unable to get back on the track. This situation can lead you to lose your home and further to the foreclosure of the mortgage. You will not have any legal right on your property if you are unable to make a full and final payment towards your mortgage loan.
Read: Ways to Lower Home-Loan Cost
What can you do to overcome this?
- Keep an emergency fund collection. Always make sure that you have sufficient amount of excess cash to meet any urgent requirement. It is not always about the interest rate that you need have to look after but you also need money for the fees, charges and to avoid a financial crisis.
- Find out ways to cut down your extra expenses, wherever you can. This may also help you save some money that can be used to pre-pay the mortgage or home loan.
- You can also Encash your stocks and investments wherever you want, to build some additional financial surplus. This decision definitely makes a great financial sense. This can also be understood as the investments that have stopped giving high returns can be used to repay the mortgage loan.
- An expert’s advice can help you not just with your investments but also on handling loans and mortgages with maximum benefits. You can also talk to your relationship manager (sales officer) at the Bank/ NBFC and the other financial institution for the further guidance to avoid foreclosure of home loan/ mortgage when you find yourself in a difficult situation to make the equated monthly installments (EMIs) payments on time.
- Get your existing mortgage refinanced to avail a better deal. If the market value of your asset/home is strong and if you fit in the eligibility criteria of the new lender then switching to a new lender can be one of the best ways to avoid mortgage mishap.
- Asking for a forbearance period is also a good option. If you have paid all your EMI is and your repayment track is clean till date. Due to market instability or non-repayment in your business or any other genuine reason for not being able to repay the home loan, you can ask for a forbearance period from your lender. With a forbearance period given by your lender, you can pay lower monthly installments (EMIs). You can always make the best use of this forbearance period to arrange funds to full fill the gap.
Things to avoid while you are struggling with your mortgage
- Do not think of taking an additional loan to arrange for funds to repay your other loan’s EMIs. This will put you at a greater risk and also such loans are offered at a very high interest rates.
- Learn to face the situation. Do not run away. Try to work out with your lender about the other options and also ask for his guidance to overcome the situation.
Also make sure that you have all the reviewed terms and conditions of the re-worked home loan agreement in a documented form duly signed from your lender side.