When you fall behind on your mortgage payments on your Kalamazoo 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 Kalamazoo and maybe keep your house even if you’re seriously behind in payments. Lots of properties in Kalamazoo have been lost to foreclosure, but there are many ways to avoid it.
Things You Can Do To Help Your Situation
Bankruptcy
This is usually the tool of last resort. If you’re being crushed by a significant amount of debt, bankruptcy can be a good way to negotiate with several lenders at once. It is a lot of work, and it won’t help you avoid your mortgage. Different lenders will treat your circumstances in unique ways. You would benefit from a professional helping you through this scenario – the best you can afford.
Reaffirming Your Mortgage
This can be good, but it may come with some unforeseen penalties. 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.
Making Home Affordable (MHA)
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 MHA.
With MHA, 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.
MHA is a government program so you need to be prepared to deal with lots of paperwork.
Negotiate With Your Bank
Lots of lenders routinely offer some level of assistance. You must 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 the interest rate.
It is a lot of work to negotiate with a bank. Usually, it takes multiple calls and the patience of a saint to get through the bureaucracy. 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.
This might sound obvious, but for some reason, there may be times bankers seem to forget this potential outcome when saying no to someone in need of help.
Ryan Buys Houses
If you’re behind on your payments and need to sell fast, we can help. We may be able to help take over your payments! It is so important that you reach out as soon as you find yourself falling behind so that we have the best chance of helping you in your situation.
We work with homeowners in Kalamazoo and surrounding areas to find solutions to foreclosure problems.
We’ll let you know how we can help!
