If you've recently received a late payment notice or notice of default from your mortgage lender, you may be wondering what to do. Once you've fallen behind on mortgage payments, your lender may begin tacking on late fees, legal fees, and other costs that can make it impossible for you to catch up. After a certain point, your lender will stop accepting your monthly payments until this past due amount is paid in full. Reinstating your mortgage can ensure that you'll avoid most of these fees and continue with a clear title to your home. Read on to learn more about some short-term loans that may provide you with the funds needed to catch up on past due mortgage payments.
How long do you have to reinstate your mortgage?
Although your lender may stop accepting your monthly payments once the amount past due exceeds the amount of your monthly payment, you do have the option to reinstate your mortgage at any point before 5:00 p.m. on the last business day before the foreclosure auction of your home. This reinstatement amount will include the total of your past due payments, plus any late fees, additional interest on the late amount, legal fees, costs of force-placed insurance, and/or costs of inspecting your home for vacancy. It's important to get a reinstatement amount from your mortgage lender and pay this amount by the deadline prescribed in this letter. After this time elapses, your reinstatement amount will increase.
What short-term loans are available to help you repay your mortgage?
If falling behind on your mortgage was a temporary blip in your finances and you're ready to start catching up, but are still falling a bit short in the savings department, you may want to take out a short-term loan to help repay your past due mortgage amount. Because it's important to reinstate your loan as quickly as possible, waiting for bank approval for a private loan can be a lengthy and difficult process. This is especially true if your credit score has fallen due to the late mortgage payments. These short-term loans are often available for those with bad credit and can provide nearly instant cash.
- Paycheck advances
If you have a job or earn regular income, you can borrow against future income by requesting a paycheck advance. When you visit a paycheck advance store, you'll need to provide proof of employment and weekly income (such as a check stub), along with your identification and bank account information. The lender will then provide you with cash and a copy of your loan documents stating the total amount due and the date you'll need to provide payment (or have the funds automatically withdrawn from your bank account).
In other cases, you'll be able to take out a paycheck advance online, just by providing the same information (including your driver's license number). The paycheck advance lender will run a credit check on you to confirm your identity and immediately transfer the funds to your bank account.
- Title loans
If you're not able to borrow enough through a paycheck advance to totally reinstate your mortgage, you may want to put up a bigger asset -- your vehicle. By taking out a loan on the title of your paid-off vehicle, you'll be able to receive a portion of the value of the vehicle in a one-time lump sum payment. This can allow you to reinstate your mortgage and catch up on any other past due bills.
To qualify for a title loan, you'll generally need a clear vehicle title (meaning there are no other liens on the vehicle, like an auto loan) and a source of monthly income. If you already have a title loan with one lender, you may be able to refinance it at a lower interest rate at another lender while receiving some additional cash. The lender may require you to provide banking information or place a GPS device on the vehicle to ensure that you repay or renew the car title loan in a timely manner.Share