Mortgage Delinquency: How to Avoid It and What to Do If You’re Struggling

_{With mortgage delinquency now a top-trending Google search, many homeowners are understandably concerned. Rising living costs, the return of student loan payments, and a slowing economy can stretch budgets thin — and no one wants to fall behind on one of life’s biggest financial obligations.}

_{At REdepot Financial, we believe knowledge is the best safeguard. Here’s what you need to know to choose a home you can truly afford — and what to do if you find yourself unable to make a mortgage payment on time.}

1. How to Choose a Home You Can Afford

_{Buying a home is exciting, but it’s essential to balance your dreams with your budget. Here are key tips:}

• _{Follow the 28/36 Rule}

  _{Ideally, your monthly mortgage payment should be no more than 28% of your gross monthly income, and your total monthly debt (including mortgage, credit cards, car loans, etc.) should stay under 36%.}

• _{Budget Beyond the Mortgage}

  _{Remember, your costs don’t stop at the mortgage — factor in property taxes, homeowners insurance, utilities, maintenance, and emergency repairs.}

• _{Build in a Cushion}

  _{Leave room in your budget for life’s surprises. Just because a lender approves you for a certain amount doesn’t mean you should max it out.}

• _{Avoid Being “House Poor”}

  _{Focus on long-term comfort, not just what you qualify for today. Being “house poor” means all your income goes to your home, leaving little for savings, retirement, or even everyday living.}

2. What Are Your Options If You Can’t Pay On Time?

_{Life happens — a job loss, medical emergency, or unexpected expense can disrupt even the best-laid plans. If you think you’ll miss a mortgage payment, here’s what you should do:}

• _{Contact Your Lender Immediately}

  _{Many homeowners delay out of fear or embarrassment, but lenders often have programs to help — the earlier you reach out, the more options you’ll have.}

• _{Explore Loan Modification or Forbearance}

  _{Depending on your situation, your lender may offer to temporarily reduce or pause payments (forbearance) or adjust your loan terms (modification) to make things more manageable.}

• _{Look Into Refinancing}

  _{If you’re struggling because of high rates, refinancing to a lower rate (if eligible) could reduce your monthly burden.}

• _{Consider Selling or Renting}

  _{If your situation seems long-term, selling the home or renting it out may help you avoid foreclosure and protect your credit.}

• _{Seek Professional Guidance}

  _{Don’t navigate this alone — mortgage professionals like the team at REdepot Financial can help you explore solutions tailored to your situation.}

Final Thoughts

^{Buying a home is a major milestone — but staying in a home you can comfortably afford is even more important. With careful budgeting and proactive action, you can protect your financial health, even during uncertain times.}

^{If you’re ready to explore home loan options or need advice on your current mortgage, give us a call. We’re here to help you make confident, informed decisions every step of the way.}