What if I’m falling behind in my mortgage payments on my Dallas / Fort Worth home, and I have no idea what to do??
Don’t despair, let’s look into some viable options. If you feel like you’re drowning in sea of debt, keep reading.
Even if you’re able to make your monthly payment this month, catching up on a past due balance can be quite an overwhelming challenge.
There are a few options that can help you to avoid foreclosure in Dallas / Fort Worth.
So, can I keep my property if I’m behind in my mortage payments? Well, maybe! Lots of properties in Dallas / Fort Worth have been lost to foreclosure, but there are many ways to avoid it. I’m behind in my mortgage payments, what can I do? We’ve compiled a short list for you below…
Help, I’m Behind in My Mortgage Payments in Dallas / Fort Worth! 5 Things You Can Do To Help Your Situation
1. Bankruptcy:
Even though we have this listed as number one, it shouldn’t be your first option of consideration. This is something you’d only want to consider as a last resort. If you’re being crushed by lots of debt from multiple lenders, bankruptcy can be a good way to negotiate with lots of lenders at once. It’s a lot of work, and it won’t help you avoid your mortgage. Different lenders will treat your circumstances in unique ways. If desiring to learn more about this option, you’ll definitely benefit from some serious professional help – the best you can afford.
2. Reaffirm:
This can be a card to play if you’ve filed for bankruptcy, but it may come with some unseen penalties. Basically, reaffirming the loan is an additional commitment to pay in an effort to not lose your home. In some states where it’s allowed, an affirmation can create additional liabilities if your property is auctioned. So again, seeking professional legal advice is the best option for making any major decisions such as bankruptcy.
So, you’re saying, if I’m behind in my mortgage payments that bankruptcy is an option? It can be, but there are other options still. Keep reading!
3. Making Home Affordable (MFA):
You might be able to participate in MHA if your specific loan applies. So which kinds of loans might apply? Any loans backed by Fannie Mae or Freddie Mac must be considered for MHA, and other lenders that choose to participate in MFA.
So if I’m behind in my mortgages payments and my loan qualifies for MFA, what kind of help can I expect? Well, with MFA, your payments and/or interest rates might be lowered – even the principal balance (if your home is worth less than you owe). If you’re unemployed, you might be able to get your payments temporarily suspended or reduced. It just all depends on your specific situation.
MFA is a government program, so be prepared to deal with lots of paperwork. It ain’t free money – you gotta work for it.
4. Negotiate with your bank:
Many lenders routinely offer some level of assistance when someone calls them and says, “I’m behind in my mortgage payments, what can I do to get back on track?” You have to work hard at it, but you might be able to get your interest rate reduced or even a temporary reduction in your payment.
Most of the time, lenders will want to steer you to refinance your loan – but by the time you’re a few payments behind, you probably won’t qualify for a reduction in interest rate.
You have to work really hard to negotiate with a bank. Usually, it takes lots of calls and the patience of a saint to get through the bureaucracy. Never, ever act rude. Ask for help from everyone you speak with, but don’t sound desperate. Explain your situation, offer supporting documents, and reassure the bank that you want to live in your home for the long term.
If you’re in need of a temporary fix and want to stay in your home, most banks can be forgiving. Sometimes they’ll be willing to add a few months of payments to the tail end of your loan balance. It’s all dollars and cents to them, so remind them that you need their help to give them a lot more money in the long run. If they end up having to sell your house at a foreclosure auction, they’ll take a huge loss, which obviously isn’t in their best interest.
That sounds obvious, but for some reason, bankers seem to forget it when saying no to someone in need of help. So be nice, stay calm, and be persistent in seeking options from your lender.
5. Borrow money from a private investor:
If you’re behind on your payments and need to sell fast, we can help.
In certain circumstances, we may even be able to help you stay in your home.
Madison Lea homes works with homeowners in Dallas / Fort Worth to find solutions to foreclosure problems.
We’ll let you know how we can help.