Here are some of our expert tips on how to avoid foreclosure in NWA when you’re behind on your mortgage payments. As you may know, it’s a big drain when you’re behind on your mortgage. You are constantly thinking about it, worried about what may happen if you don’t make the payment this month. And then, even if you do make the payment, how are you supposed to pay all the previous months that are overdue? Here’s the good news:
It’s not always easy, and it requires some creativity, but it can be done. Assuming that’s why you’re here, we’ll give you a few options if you’re trying to figure out what to do.
Obviously this isn’t the ideal solution, but you shouldn’t ignore it out of principle. If you have a ton of debt and know you won’t be able to find a way out of it, bankruptcy can be a path forward. It allows you to negotiate with a ton of lenders at the same time. It takes a lot of work and won’t take away your mortgage payments. Different lenders have unique requirements and will handle your bankruptcy differently. We’d recommend getting professional help if you’re going to pursue this path.
Essentially reaffirming the loan is when you recommit to pay after bankruptcy. This isn’t allowed in every state, but an affirmation can have some additional penalties that arise later on. We won’t get into too many details, but reaffirming after bankruptcy tells the lender that you are still committing to pay your mortgage payments.
The Making Home Affordable program is a HUD program that helps make loans affordable for families struggling to afford their mortgage payments. It modifies the payment to a level that struggling homeowners can afford long term. Loans backed by Freddie Mae or Freddie Mac must be considered. If you decide to pursue this route, be prepared for a lot of red tape and paperwork.
This is especially timely considering all of the economic difficulties facing America. Many lenders are offering assistance for mortgages by reducing rates, temporary payment reductions, or even delayed payments.
The best thing to do in this situation is to be up front and honest with your lender. Explain your situation and the difficulties you’re facing. Have all important documents prepared and reassure the bank you want to own the property for a long time. Remind them that any help you get will be returned and be genuinely thankful for any help they can offer.
Many private lenders and home investors are able to help in your situation. Investors often buy properties quickly, in cash, and help homeowners that are struggling to get out of their problems. For example, here at Cash Homes NWA, we can usually make an offer and close on a house within a week or two. We’ve found this can be tremendously helpful for sellers who are facing these situations.
If you’re interested in learning more about how we can help, give us a call now at 479-259-2633 or fill out the form below to get started.