Falling behind on your mortgage payments can be frightening. Maybe you missed one payment because of an unexpected expense. Maybe you’ve been struggling for several months because of job loss, divorce, medical bills, or another major life change.
Whatever caused the problem, ignoring the situation usually doesn’t make it go away.
If you’re behind on your mortgage payments in Berks County, Pennsylvania, you may have several options. Depending on your circumstances, you may be able to work with your mortgage servicer, seek housing counseling or mortgage assistance, or sell the property before the situation gets further along.
The most important thing is to understand your options and take action as early as possible.
What Should You Do If You’re Behind on Your Mortgage?
If you’re having trouble making your mortgage payments, start by figuring out exactly where you stand.
Look at:
- How many mortgage payments you have missed
- How much you currently owe
- Whether you’ve received letters or notices from your mortgage servicer
- Whether you’ve received a foreclosure-related notice
- How much equity you may have in the property
- Whether you can realistically catch up on the missed payments
- Whether you still want to keep the house
Your best option depends heavily on your individual situation.
1. Talk to Your Mortgage Servicer
If you’re behind on your mortgage, don’t ignore calls or letters from your lender or mortgage servicer.
Contact them and explain what is happening.
Depending on your loan and circumstances, your servicer may have options that could help you address the delinquency or make your payments more manageable.
Ask what loss-mitigation options may be available and what documentation they need from you.
The sooner you communicate with your mortgage servicer, the more options you may have to explore.
2. Look Into Pennsylvania Mortgage Assistance
Pennsylvania homeowners facing certain financial hardships may qualify for assistance through the Homeowners’ Emergency Mortgage Assistance Program (HEMAP) administered by the Pennsylvania Housing Finance Agency (PHFA).
HEMAP is a loan program, not a grant, and eligibility requirements apply. Among other requirements, qualifying homeowners generally need to demonstrate financial hardship and a reasonable prospect of resuming their mortgage payments.
If you have received an Act 91 Notice, pay close attention to it and follow the instructions provided.
PHFA also provides foreclosure-prevention information and connects homeowners with approved counseling agencies.
Important: Mortgage assistance programs have specific eligibility requirements and deadlines. Contact PHFA or an approved housing counselor for current information about your situation.
3. Talk With a HUD-Approved Housing Counselor
You don’t have to figure everything out by yourself.
HUD-approved housing counseling agencies can provide assistance with mortgage delinquency, default resolution and foreclosure-related issues. HUD recommends homeowners seek counseling when they are having difficulty with their mortgage.
There are also housing counseling resources available in the Berks County area.
Getting independent housing counseling can help you understand your options before deciding what to do with your home.
4. Consider Whether Keeping the House Is Realistic
Sometimes the best solution isn’t simply figuring out how to catch up on the mortgage.
You also need to ask:
Can I realistically afford to keep this house?
If your financial circumstances have changed permanently, continuing to struggle with an unaffordable mortgage may not be the best long-term solution.
Selling the property could potentially allow you to pay off the mortgage and move forward without continuing to carry an unaffordable housing expense.
And if the property needs repairs, is vacant, has tenants, or has other problems, you may not want to go through the traditional process of preparing it for sale.
What If I Need to Sell My House Because I’m Behind on Payments?
If you have enough equity in your home, selling the property may be one option to consider.
A traditional home sale can take time and may involve:
- Cleaning and preparing the property
- Making repairs
- Hiring a real estate agent
- Scheduling showings
- Waiting for a buyer
- Negotiating an offer
- Waiting for the buyer’s financing and inspections
- Paying commissions and other selling costs
That process can work very well for some homeowners.
But it isn’t the right solution for everyone.
If you’re already behind on your mortgage payments and you’re worried about how quickly you need to resolve the situation, you may want to consider all of your available selling options.
Can I Sell My House If I’m Behind on Mortgage Payments?
Yes, in many situations a homeowner can sell a property even when mortgage payments are behind.
The important question is whether the property can be sold for enough to satisfy the mortgage and other liens and closing costs, or whether another solution is necessary.
If you have equity in the property, selling it may allow you to pay off the mortgage at closing and move on.
If you’re unsure how much your home is worth or how much you owe, that’s something you should determine before making a decision.
What If My House Needs Repairs?
Being behind on your mortgage can be even more stressful when the house also needs work.
Maybe the roof needs to be replaced.
Maybe the kitchen hasn’t been updated in decades.
Maybe there is water damage, hoarding, fire damage, an unfinished renovation or years of deferred maintenance.
You may think:
“I can’t sell this house until I fix it.”
That’s not necessarily true.
Some home buyers purchase properties in as-is condition, meaning the homeowner doesn’t have to complete repairs or renovations before selling.
At Berks County House Buyers, we purchase houses in a wide range of conditions throughout Berks County.
What If I Don’t Have Time to List My House?
If you’ve already fallen behind on your mortgage, time may be one of your biggest concerns.
A traditional listing can be the right choice when you have the time, money and ability to prepare the property for the market.
But some homeowners need a simpler solution.
Perhaps you’ve received foreclosure-related correspondence.
Perhaps you’ve already moved.
Perhaps you’re dealing with an inherited property, divorce, job loss or another major life change.
Or maybe you simply don’t want to spend months preparing the house for sale.
In those situations, selling directly to a cash home buyer may be an option worth investigating.
How Selling Your House for Cash Could Help
When you sell directly to a cash home buyer, the process can be different from a traditional real estate sale.
At Berks County House Buyers, we purchase properties directly from homeowners.
That means you don’t have to:
- Make expensive repairs before talking with us
- Clean out every room before we see the property
- Wait for an agent to find a buyer
- Schedule multiple showings
- Wait for a buyer’s mortgage approval
We buy houses as-is, including properties that need substantial repairs.
Every situation is different, and there is no guarantee that selling to a cash buyer will be the best option for you. That’s why we encourage homeowners to understand their alternatives before making a decision.
What If I’ve Already Received a Foreclosure Notice?
If you’ve received a foreclosure-related notice, don’t ignore it.
Pennsylvania has specific foreclosure procedures and homeowner protections, and your options can depend on where you are in the process.
If you’ve received an Act 91 Notice, read it carefully. PHFA’s HEMAP program provides assistance to certain qualifying Pennsylvania homeowners facing mortgage delinquency, and the notice contains information about seeking counseling and applying.
You may also want to speak with:
- Your mortgage servicer
- A HUD-approved housing counselor
- PHFA
- A qualified Pennsylvania attorney
If you’re considering selling the property, you should also understand how the timing of a potential sale relates to your particular situation.
Don’t wait until the last possible moment to find out what your options are.
We Buy Houses in Berks County, PA
Berks County House Buyers works with homeowners throughout Berks County who need to sell properties for a variety of reasons.
We have purchased houses involving situations such as:
- Mortgage problems
- Foreclosure concerns
- Divorce
- Inherited properties
- Vacant houses
- Rental properties
- Houses needing major repairs
- Fire-damaged properties
- Unwanted properties
- Properties with tenants
- Houses that homeowners simply don’t want anymore
We don’t expect every house to look perfect.
We’ve seen houses in all kinds of conditions and situations.
If you’re behind on your mortgage and wondering whether selling your house could be an option, we’ll take a look at the property and explain what we may be able to offer.
What Happens When You Contact Berks County House Buyers?
The first step is simple: tell us about the property.
We’ll ask you some basic questions about the house and your situation.
From there, we’ll evaluate the property and determine whether we can make you a cash offer.
If we can help, we’ll explain the offer and the process.
If we can’t buy the property or don’t believe we’re the best solution for your situation, we’ll tell you that too.
There is no obligation to accept an offer.
Behind on Your Mortgage? You Have Options.
Falling behind on mortgage payments can make you feel like you’ve run out of choices.
You haven’t necessarily run out of choices.
Depending on your circumstances, you may be able to work with your mortgage servicer, explore Pennsylvania mortgage assistance, speak with a housing counselor, sell your house traditionally, or consider a direct cash sale.
The important thing is to understand your options before the situation gets worse.
If you’d like to find out what Berks County House Buyers may be able to offer for your property, tell us about the house.
Get a Fair Cash Offer for Your Berks County House
We buy houses in Reading, Wyomissing, Exeter, Sinking Spring, West Lawn, Mohnton, Hamburg, Boyertown, Fleetwood, Kutztown, and communities throughout Berks County, Pennsylvania.
Tell us about your property and we’ll take a look.
Call 610-816-6205 or fill out the form on this page to get started.
Frequently Asked Questions
Can I sell my house if I’m behind on mortgage payments?
In many situations, yes. Being behind on mortgage payments does not automatically prevent you from selling your house. The amount owed, property value, liens and stage of any foreclosure proceedings can affect your options.
Can I sell my house before foreclosure?
A homeowner may be able to sell a property before a foreclosure is completed. If you’re facing foreclosure, it’s important to understand your specific timeline and speak with qualified professionals about your options.
Can I sell a house that needs repairs if I’m behind on the mortgage?
Yes. Some buyers, including cash home buyers, purchase properties in as-is condition. This can eliminate the need to make repairs before selling.
What if I owe more on my mortgage than my house is worth?
If you owe more than the property is worth, the situation is more complicated. A traditional sale may not generate enough proceeds to pay off the mortgage and other costs. Talk with your mortgage servicer and a qualified professional about your available options.
What is HEMAP in Pennsylvania?
HEMAP stands for the Homeowners’ Emergency Mortgage Assistance Program. It is a Pennsylvania program administered by PHFA that provides qualifying homeowners with mortgage assistance designed to help prevent foreclosure. It is a repayable loan program, not a grant, and eligibility requirements apply.
Should I talk to my lender if I’m behind on my mortgage?
Yes. PHFA advises homeowners who are having trouble making mortgage payments to contact their mortgage servicer and seek help as soon as possible rather than ignoring letters and calls.
Is selling my house for cash always the best option?
No. Every homeowner’s circumstances are different. A traditional sale, mortgage assistance, housing counseling, or another solution may be more appropriate. The goal is to understand your options and choose the solution that makes sense for your situation.