The pandemic has led to rising levels of unemployment and loss of income. 

If you are now struggling to make your mortgage payments, you're not alone. According to RealtyTrac, one in every 12,448 homes is in foreclosure throughout the United States, as of Dec. 2020. In Florida, one in every 6,240 homes is in foreclosure.

Whether your mortgage is backed by a government program or by a private firm, experts lay out different solutions when you're struggling to pay on time.

Solution 1: Request Mortgage Forbearance

Both Freddie Mac and Fannie May released guidelines for mortgage forbearance related to COVID-19. Essentially, they each are providing mortgage forbearance to borrowers financially affected by the coronavirus for up to 12 months.

Solution 2: Refinance to a Longer-Term Loan

Spacing your loan out over a longer period is one option that can reduce your monthly payment amount. Refinancing to a longer-term loan is the simplest way to reduce monthly mortgage payments, especially when cash flow is a problem.

Solution 3: Refinance to Change Your Interest Rate Terms

Refinancing to an adjustable-rate mortgage (ARM) is a viable option if you’ve almost finished paying off your mortgage. A perfect example is a homeowner who anticipates selling their home in the next three years and currently has a $400,000 fixed-rate loan at 4.25% paying $1,976.76 per month.

Solution 4: Challenge Property Taxes

If the value of your home has dropped, challenging your property tax may provide some financial relief.

Solution 5: Modify the Loan

A loan modification is an alternative for those who cannot refinance their loan but need to lower their monthly house payment. But, unlike a refinance, it requires a hardship. 

Solution 6: Get a Home Equity Loan

Getting a home equity loan may provide immediate assistance to struggling homeowners, but this strategy only works if you have a lot of equity in your house, which means that your home is valued at much more than you owe on it. 

Solution 7: Get the Lender to Eliminate Private Mortgage Insurance

Depending on how much equity is in your home, eliminating the private mortgage insurance (PMI) can lower your mortgage payments. She explains that borrowers who usually don’t pay 20% down are required to have PMI for at least two years, but there may be exceptions to the two-year rule. For example, if the homeowner made improvements to the house that increased the value, the requirement may be waived.

If you’re struggling with your mortgage, don’t throw in the towel. Various solutions can help you stay in your home and manage your monthly mortgage payments.

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