Have you fallen behind on your mortgage? We wrote this post to cover some things you can do to prevent your home from being foreclosed on.
When you get to be “behind on Salt Lake City mortgage payments“, it can seem like all hope is lost.
Even when you manage to pay your current bill, trying to make up for past payments can feel overwhelming.
You do have some ways to try and avoid foreclosure in Salt Lake City and potentially keep your home, even if you’ve fallen far behind with your payments. Many Salt Lake City homes have been foreclosed on, but here are some of the ways to avoid that.
1. File Bankruptcy:
This option is normally the last resort for those unable to keep up with their bills. If your debt has become overwhelming, bankruptcy can be a viable method of negotiating with many lenders together at the same time. This will be a lot of work, and won’t help you with your mortgage troubles. Different lenders have different ways of treating your situation. In this case, it would be wise to get the best professional help you can afford.
2. Reaffirming the loan:
Reaffirming your loan can be a good method to try, but does not come without consequences. To reaffirm means to make a new commitment to pay. In some regions, reaffirmation can impose stricter liabilities on you if your property goes to auction.
3. The Making Home Affordable (MHA) program:
You may be able to utilize the MHA program if your mortgage meets the requirements. All mortgages supported by Fannie Mae and Freddie Mac are required to be considered under MHA, and other loan providers can choose to participate or not.
Under MHA, your interest rate and/or payments may be decreased – this even applies to your principal amount (if you owe more than your home is worth.) If you’ve become unemployed, your payments could be suspended or reduced temporarily.
This is a government program, so prepare yourself for a bunch of paperwork. This isn’t just free money – you have to put forth the effort to receive the help.
4. Try to negotiate with your bank:
A lot of banks regularly provide some type of help. You’ll need to really work at it, but you may end up with a temporarily reduced payment or an interest rate reduction.
It’s often the case that a bank will attempt to get you to simply refinance – but by the time you’ve missed a few payments, many people will no longer qualify for a reduced interest rate.
Negotiating with a bank is a hard process. It will normally require many phone calls and an extreme amount of patience to see it through. Whatever you do, don’t be rude during this process. Seek help from those you speak to, but don’t appear desperate. Tell them about your situation, have the relevant documents to ready, and give reassurances to the bank that you are seeking to keep living in your house for the long-term future.
If you’re hoping for a short-term solution and seek to remain living at your property, many banks are often willing to try and help. Some may do so in exchange for adding some additional payments to your loan to pay later. It’s all about the bottom line for the bank, so if you can convince them that you’ll stay and pay the remainder of your loan, they may just opt to work with you to let that happen.
5. Take a loan from a private investor:
If you’ve fallen behind with your mortgage payments and are needing to sell your home fast, we can provide help.
In some cases, we might even have the ability to help keep you in your home.
We provide help to Salt Lake City homeowners by finding solutions to their foreclosure struggles.
Talk with us and we’ll see how we can help.
Call us today at (801) 876-1036 or fill out this simple form to get started.