When you fall behind on your mortgage payments on your Central Mississippi 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 Central Mississippi and maybe even keep your house, even if you’re seriously behind in payments. Lots of properties in Central Mississippi have been lost to foreclosure, but there are many ways to avoid it. You need to work with knowledgeable agents and investors who have seen these types of market and know more options than newer industry members.
Help, I’m Behind in My Mortgage Payments in Central Mississippi! 5 Things You Can Do To Help Your Situation
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 or avoid foreclosure, only delay foreclosure. Different lenders will treat your circumstances in unique ways. You’d benefit from serious professional help – the best you can afford. Bankruptcy rarely stops foreclosure. It may delay the inevitable, but it may help you get your overall debt payments restructured and help save your house from foreclosure. Loan modifications or forbearance could be an option but read the fine print in the documents, so you are not caught by a higher interest rate, or a lump sum payment due at a future date that is not reasonable for you. Selling your house in Mississippi when in foreclosure is possible right up until it is sold on the courthouse steps. An offer at that moment won’t be enough! You will need a buyer that is experienced in buying a foreclosure property this late in the process. They will have to communicate directly with the lender and foreclosure attorney, and prove that cash funds have been remitted, usually by wire transfer. In this ninth hour attempt, the mortgage lender will need proof that the funds have been wired and are on the way through the Federal Reserve Bank system to the mortgage company’s account. This is the riskiest option, and you will have far less stress if funds are remitted days ahead of the sale.
2. Reaffirm:
This can be a good card to play, but it may come with some unseen penalties. 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. Seek wise council from legal professionals that can interpret the fine print obligations before you sign.
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. For more information on this program, visit MS Home Corp or Housing | U.S. Department of the Treasury
4. Negotiate with your bank:
The key here is – Call Early and Call Often. Show the bank you don’t want to lose your property and want to work together to find the best solution. This is the most important action you can take on Day 1. I have seen sellers approved for a payment deferral when they call before they are behind. That deferral may give you the time you need to get the house sold or work out a solid plan get back on track and keep your home. 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. Whatever works best for you, be proactive in exploring all of your options and always ask for help!
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. Document everything – the dates/times you call, who you spoke to, every department transfer, etc. Banks generally record calls, but your notes will show them, you are keeping up with the conversation also.
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. We all hate to ask family for help, but in this situation, a small loan to bring your loan current may be the boost you need to be able to stay in your home while you get it sold. In certain circumstances, we may even be able to help you stay in your home.
We work with homeowners in Central Mississippi to find solutions to foreclosure problems.
We’ll let you know how we can help.