What to Do if a Disability Causes You to Get Behind on Your Mortgage Payments

Written by Posted On Monday, 16 May 2016 12:05

By all accounts, the day you close on your new home is one of the most joyful days of your life. That joy should carry throughout your thirty year mortgage, but it doesn’t always; sometimes, the joy turns to despair when you realize that you can no longer afford your mortgage payments. Although you are financially responsible, you had no idea that unforeseen circumstances, such as an accident or prolonged illness, would arise.

 

The reality is you’ve got a home you love, but no way to pay for it. Fortunately, there are a few things you can do to help yourself out of this predicament. By the way, this is the exact situation mortgage insurance is for, so if you’re not currently at a loss to pay you can subscribe to this insurance to protect yourself from future repayment issues.  

Maintaining Income

Your first step is to apply for disability. This is a realistic starting point, but one that is time-consuming, confusing, and extremely difficult. Disability, known herewith as SSI and SSDI, isn’t the easiest thing to apply for. According to social security disability advocates, Myler Disability, applying for SSI or SSDI “can be a long, stressful, and confusing process.” The process is arduous, and may require that you attend a hiring before you’re approved for funds.  

Unfortunately, many SSI and SSDI applications are denied. In fact, only 35 percent of applications were approved in 2010. Most of the denials were technical denials; meaning, there is a chance the applicant could have been approved, but they messed something up on the data side (perhaps, not enough information was given). The easiest way to avoid a technical denial is to garner representation, such as a lawyer or advocate, who can help you fill out your application, submit it, and speak on your behalf at hearings.

Because SSI and SSDI claims can take years, a lawyer is your best chance at speeding up the process. Look for representation that has a proven history of winning claims, such as Myler Disability. With an A+ Better Business Bureau rating, it’s widely understood that they’re capable of winning cases for the clients they take on. The sooner you apply, the sooner you can start receiving funds with which to pay your bills. That’s why applying for disability is an important first step.

If you can work, you should work safely; meaning, don’t worsen your injuries or illness to continue to make your mortgage payments. You do have other income options, including you can rent out space in your home. A roommate can help to lessen the burden of the mortgage payments. There are jobs online you can do from home, as well as you can sell stocks and other assets to help support you while you wait for your income situation to improve.

Don’t Be Afraid to Ask for Help

Contact your mortgage company as soon as possible. Some companies may be willing to work with you in order to avoid a foreclosure. Explain that you have suffered illness or injury and you can’t afford your mortgage payment. If you’re fortunate, they may agree to work with you; they may go as far as to reduce your payments or allow you to skip a few payments if you’re able to catch up later. They may even have in-house programs designed exactly for people in your situation.

Finally, you can reach out to the U.S. Department of Housing and Urban Development. They have counselors on-staff who can help you refinance, get a loan modification, get a forbearance, or in a last-case scenario sell your home in a short sale. Don’t sell your home if you don’t have to; first, exasperate all your other options and see if there isn’t a way you can increase your income or lower your payments.

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Ryan Kh

Ryan Kh is a big data and analytic expert, marketing digital products on Amazon’s Envato. He is not just passionate about latest buzz and tech stuff but in fact he’s totally into it. Follow Ryan’s daily posts on Forumsmix. Email him at ryankh14@icloud.com, and follow him on Twitter, LinkedIn and Tumblr.

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