Falling behind on your mortgage payments is never fun. I mean, who wants to feel like they’re drowning in debt? Catching up on payments that are past due is without a doubt overwhelming, to say the least. I’m hoping that my team at High Peaks Capital can provide you with a few options that could help you avoid foreclosure.
- Bankruptcy. You want to have this as your last resort. If you are pummeled with debt, filing for bankruptcy can help you negotiate with multiple lenders at once. Keep in mind that it takes a lot of work, and filing for bankruptcy doesn’t mean you can avoid paying your mortgage. All lenders will respond to your circumstances differently. Try to get professional help if you decide on taking this route.
- Reaffirm. This could be a good option but can come with some surprise penalties. To summarize, reaffirming the loan means having another commitment on your list to pay. Some states allow additional liabilities if the property is auctioned due to the affirmation.
- MFA. This means Making Home Affordable. If you qualify, you could participate in MHA. Loans that are backed by Fannie Mae or Freddie Mac have to be considered for MHA and other lenders that participate in MFA. MFA your payments and even interest rates can be lowered. If your unemployed, you could ask to get your payments temporarily suspended or lowered. Keep in mind that MFA is indeed a government program, so be sure to know the paperwork that lies ahead of you.
- Negotiate with your bank. Banks DO NOT want to own your property, trust me, it’s the last thing they want to do. It may require a lot of negotiating and hard work, but talking to your loaner could potentially leave room for further assistance. Just know that this will require lots of patience and time on the phone. Having a clear explanation of your situation and offering your bank supporting documents can really help you in your negotiations.
- Finding an investor. If you’re looking to sell your house fast, we’re more than happy to help. Our team may be able to help you keep your home as well if that’s what you’re working towards! We’re here to help you find solutions to your foreclosure problems.