Best Tips To Help When I’m behind in my mortgage payments!

behind-on-mortgage
Behind on your mortgage? Read this article for a few tips on what you can to do prevent and avoid foreclosure

When you fall behind in your mortgage payments on your Oakland home, it can feel like you’re drowning in debt. Constantly hearing how much you owe in full can be demoralizing, mortgage company reps calling and asking how do you plan to get your payments caught up. You just might want to yell at them! You say to yourself, “can’t you see I haven’t caught up in 4 months what on Earth makes you think I can do it NOW!”

Even if you’re able to make your monthly payment, catching up on a past due balance can be an overwhelming challenge.

There are a few options that can help you to avoid foreclosure in Oakland and maybe even keep your house, even if you’re seriously behind in payments. Lots of properties in Oakland and the Bay Area have been lost to foreclosure, but there are many ways to avoid it. Relieving stress is something we at Home Scout Investing take pride in as we seek to lift that burden off of your shoulders and put it in our hands. So you no longer have to say, “I’m behind in my mortgage payments, what will I do!”

1. Bankruptcy:

This is usually the tool of last resort. If you’re being crushed by lots of debt, 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. You’d benefit from serious professional help – the best you can afford. We do not want you to have to take this drastic measure, it will have a negative impact on your credit making it a problem for future events that you might want to explore.

2. Reaffirm:

This can be a good card to play, but it may come with some unseen penalties. Most people chose to do this while they are in bankruptcy or post-bankruptcy.  There are procedures that you must follow, just telling your creditor you intend to pay the debt regardless of the bankruptcy will not be good enough. Basically, reaffirming the loan is an additional commitment to pay. In some states where it’s allowed, an affirmation can create additional liabilities if your property is auctioned.  This is a risky plan of action, you are already behind in your payments, so telling your mortgage company that you again promise to pay with the same agreed upon loan structure is an “All Or Nothing” type of play.

3. Making Home Affordable (MFA):

If your mortgage qualifies, 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 MFA.

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.

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:

Lots of lenders routinely offer some level of assistance. You have to work hard at it, but you might be able to get your interest rate reduced or a temporary reduction in your payment.

Most of the time, lenders will want to steer you to refinance your loan. It will be very vital that you remain persistent with this method, banks can be very hardline with their policies. So you have to break through that wall of complacency by the bank officers. But by the time you’re a few payments behind, you probably don’t qualify for a reduction in interest rate.

Again 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 it will come off like you are at your wit’s end and they will doubt that you have the capabilities to come through on repayment. 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 back onto the primary balance of your loan. 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 have to sell your house at a foreclosure auction, they’ll take a huge loss.

That sounds obvious but for some reason, bankers seem to forget it when saying no to someone in need of help.

5. Borrow money from a private investor:

If you’re behind in 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.

We work with homeowners in Oakland and the surrounding Bay Area to find solutions to foreclosure problems.

We’ll let you know how we can help.

Give us a call now at (844) 602-5765 or
fill out the form on this website to get started.

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