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The prospect of moving abroad is no doubt a very exciting one. Not everybody gets this sort of opportunity and for many people it’s a lifelong dream.
However, it does come with a lot of anxiety, planning and having to tie loose ends. One of those loose ends is “What do I do about my mortgage?”.
That’s a really good and frequent question and can cause quite a fair amount of headaches. Hopefully this article will provide you with enough information and guidance so you know your options and are in a position to make the best choice for your particular situation.
How to Pay Your Mortgage When You Live Abroad
Before moving abroad, it is generally advised that you pay off any debts but in the case of a mortgage, it’s highly unlikely that you can afford to do so.
That means you have to keep up with your payments even if you no longer live in the country. Depending on where you’re from and your contract, if you miss payments for three to six months, your loan is deemed delinquent and the lender has the right to begin the legal process of foreclosure. Laws vary by state, so you can slow down this process by searching Philadelphia mortgage foreclosure lawyer, for example, or whatever state you’re from.
Then you lawyer can challenge the lender’s complaint within 20 days and now the court will have to respond in 40 days. This can go back and forth giving you the chance to get your finances in check or renegotiate the terms of your loan through your lawyer. You can even get a mortgage forbearance agreement.
It’s also a good idea to keep your bank account at home open and operational so you can manage repayments and other financial transactions more easily.
You Can Rent Your Property
Since you won’t be living there anyway, it makes sense to rent your home which will help you pay off at least part of your mortgage. Just remember that you have to declare this income and you need to change your insurance policy, the homeowner’s insurance won’t cover you if you have tenants. If your landlord insurance policy also comes with guaranteed income insurance you’ll be protected against lost income in case any of your tenants don’t pay their rent.
You can set this up by enlisting the help of family members or friends or you can hire a property manager. They charge around 10% of the monthly income derived from the rental property but if you’re living in another country you won’t be able to find tenants by yourself, handle any potential complaints from them or make the necessary arrangements to deal with maintenance issues. The property manager will do all that for you.
You just have to make sure you hire a good one with plenty of experience but since we now have access to the internet you can easily check for their accreditation and reviews.