Help, I’m Behind in My Mortgage Payments
When you fall behind on your mortgage payments on your Orlando home, it can feel like you’re drowning in debt.
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 Orlando City and maybe even keep your house, even if you’re seriously behind in payments. Lots of properties in Orlando City have been lost to foreclosure, but there are many ways to avoid it.
5 Things You Can Do To Help Your Situation
1. Bankruptcy:
If you are facing a significant amount of debt and have exhausted all other options, bankruptcy may be a viable solution for you. This process allows you to negotiate with multiple lenders at once and potentially discharge some or all of your debts. The process of filing for bankruptcy can be intricate and challenging, potentially causing emotional stress. It is crucial to understand that its intricacy can cause emotional strain. Furthermore, it is worth noting that bankruptcy does not provide any relief when it comes to your mortgage, which must still be paid in full.
It is important to keep in mind that each lender will handle your situation differently, which is why it may be beneficial to seek the help of a qualified professional who can provide you with the guidance and support necessary to navigate this process. It is important to weigh the pros and cons of declaring bankruptcy and determine if it is the most suitable option based on your individual financial situation.
2. Reaffirm:
If you’re considering reaffirming a loan, it’s important to think about the implications before making a decision. Essentially, reaffirming a loan means that you’re making an additional commitment to pay back the debt. While it may help you keep your assets, like a car or a house, it can also carry some unseen penalties. In states where it’s allowed, an affirmation can create extra liabilities if your property is auctioned. This means that if you’re unable to make payments on the loan, you may be held responsible for any remaining balance even after the property is sold. When considering whether to reaffirm a loan, it is important to weigh the advantages and disadvantages that come with it before making a decision.
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 – but by the time you’re a few payments behind, you probably don’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 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 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.
We work with homeowners in Orlando City to find solutions to foreclosure problems.
We’ll let you know how we can help.