When you are behind in your mortgage payments & facing foreclosure it could be one of the worst feelings. Even if the monthly payments are being made, catching up on the past due amounts could seem like its taking forever.
But you are in luck today because we have a few options that can help you catch up on your payments & possibly keep your property even if you think you will never catch up. A ton of properties in Trenton have been lost to foreclosure, but there are a lot of ways to avoid it.
1. Bankruptcy:
You would usually use this as a tool of last resort. If you’re being bogged down by a lot of debt, bankruptcy can be a good way to negotiate with lots of lenders at once. Although it takes a lot of work, and it will not help you avoid paying your mortgage. Different lenders will treat your circumstances in unique ways. It would be beneficial to get some professional help with this option to further the process.
2. Reaffirm:
This might be a good way to go, but it may come with some unseen penalties. Basically, reaffirming the loan is an additional commitment to pay. Where this is allowed in some states, an affirmation can create additional liabilities if your property is auctioned.
3. Making Home Affordable (MHA):
If your mortgage qualifies for this, you might be able to participate in MHA. Any loans backed by Fannie Mae or Freddie Mac must be considered for MHA, and other lenders choose to participate in MHA. With MHA assistance, your payments and/or interest rates have a chance to be lowered. If your home is worth less then you owe even the principal balance can be altered. As for those who are unemployed, you might be able to get your payments temporarily suspended or reduced. MHA is a government program, so there will be a strenuous process & fees involved.
4. Negotiation:
Lenders sometimes offer some level of assistance. Although you will have to work hard at it, you might be able to get your interest rate reduced. Depending on your situation you may also be able get a temporary reduction in your payment. But most of the time lenders will want to steer you to refinance your loan. Sometimes it doesn’t work because by the time you’re a few payments behind you most likely won’t qualify for a reduction in interest rate.
Negotiating with a bank could be a very difficult process. It usually takes a lot of conversations & patience to get through it all. Always ask for help from everyone you speak with, but sounding desperate will never help you. Explain the situation, by offer supporting documents & reassuring the bank that you want to live in your home for the long term can be a big plus.
If you need a temporary fix & want to stay in your home, most banks can be forgiving. Sometimes they’ll be willing to add a few months of payments back onto the primary balance of your loan. It’s all dollars and cents to them, so let them know you need their help to give them more money in the long run. You would be privy to let them know that you can both help each other. It’s obvious how they can help, but on their end if the property had to auction the bank would take a huge loss & it could all be prevented.
5. Private investor’s can help:
In these type of situations believe it or not a private investor can help a lot. If you need to sell your property fast & want to get out of the house, we can help. In some instances, we may even be able to help you stay in your home. We work with homeowners all the time in Trenton to come up with creative solutions to help them in their situations. So contact an investor immediately for a solution.