When you fall behind on your mortgage payments on your Savannah home, it can feel like you’re drowning in debt with no way to stop foreclosure.
Even if you’re able to make your monthly payment, catching up on a past due balance can be an overwhelming challenge. Not everyone can snap their fingers and magically come up with thousands of dollars.
There are a few options that can help you to avoid foreclosure in Savannah and maybe even keep your house, even if you find yourself behind on payments. Lots of houses around Savannah have been lost to foreclosure. But the good news is, there are many ways to avoid it.
5 Things You Can Do To If Your Behind On Mortgage Payments
This is usually the tool of last resort. If you find yourself being crushed by lots of debt, bankruptcy can be a good way to negotiate with lots of lenders at once. It’s not recommended, it’s a lot of work, and it won’t help you avoid your mortgage. Different lenders will treat your circumstances in different ways. If you are considering bankruptcy, you’d benefit from serious professional help, the best you can afford. Let’s explore more options to stop foreclosure before you begin the bankruptcy paperwork.
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 states where it’s allowed, an affirmation can create additional liabilities if your property is auctioned. Click here to learn more about the debt reaffirmation process in Georgia.
3. Making Home Affordable (MHA):
If your mortgage qualifies, you might be able to participate in the Making Home Affordable Program (MHA). Any loans backed by Fannie Mae or Freddie Mac must be considered for MHA, and other lenders choose to participate in MFA.
With MHA, your payments and/or interest rates could be lowered, even if your home is worth less than you owe). If have suddenly found yourself unemployed, you might be able to get your payments temporarily suspended or reduced.
MHA is a government program, so be prepared to deal with lots of paperwork. It’s not free money, you will have to apply, qualify, and complete the process. To see if you qualify to participate in the, CLICK HERE to visit the MHA website.
4. Negotiate with your bank:
Tons of mortgage lenders routinely offer some level of assistance if you find yourself behind on mortgage payments. Just like anything in life, 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. It usually takes lots of calls and tons of patience to get through the paperwork bureaucracy. Ask for help from everyone you speak with, don’t sound desperate, and you definitely don’t want to be rude. Explain your situation to whoever you end up speaking with, offer to send them any supporting documents, and reassure your mortgage lender 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. Banks are in business to make money, it’s all dollars and cents to them, so remind them that you are working through a situation, and you will end up making them a lot more money in the long run. If the bank ends up having to sell your house at a foreclosure auction, they’ll take a huge loss, and that’s not good for business.
5. Borrow money from a private investor:
If you are like millions of Americans, finding yourself 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 Savannah to find solutions to foreclosure problems.
We’ll let you know how we can help.