When you fall behind on your mortgage payments on your Frisco 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 Frisco and maybe even keep your house, even if you’re seriously behind in payments. Lots of properties in Frisco have been lost to foreclosure, but there are many ways to avoid it.
Help, I’m Behind in My Mortgage Payments in Frisco! 5 Things You Can Do To Help Your Situation
1. Bankruptcy:
Filing for bankruptcy is usually a last resort, but it can be a viable option if you’re overwhelmed by debt. Bankruptcy allows you to negotiate with multiple lenders simultaneously, potentially easing your financial burden. However, it’s a complex process that requires significant effort and won’t necessarily prevent foreclosure on your mortgage. Each lender will respond to your situation differently, so it’s crucial to seek the best professional assistance you can afford to navigate the process effectively. Getting expert advice will help you understand your options and make informed decisions.
2. Reaffirm:
Reaffirming a loan can be a strategic move, but it may carry some hidden penalties. Essentially, reaffirming the loan is an additional commitment to continue paying it off. In some states where this is permitted, reaffirmation can lead to extra liabilities if your property goes to auction. It’s important to fully understand the potential consequences and consult with a professional before deciding to reaffirm a loan.
3. Making Home Affordable (MFA):
If your mortgage qualifies, you might be able to participate in the Making Home Affordable (MHA) program. Any loans backed by Fannie Mae or Freddie Mac must be considered for MHA, and other lenders may choose to participate as well.
With MHA, your payments and/or interest rates might be lowered, and in some cases, even the principal balance might be reduced if your home is worth less than you owe, however this is not common because of the rise in homes values in recent years. If you’re unemployed, you might be able to get your payments temporarily suspended or reduced.
Keep in mind that MHA is a government program, so be prepared to deal with a substantial amount of paperwork. It’s not free money—you’ll have to put in the effort to qualify and maintain compliance with the program requirements.
4. Negotiate with your bank:
Many lenders routinely offer some level of assistance to struggling homeowners. While it requires effort, you might be able to negotiate a reduced interest rate or a temporary payment reduction.
Often, lenders will suggest refinancing your loan, but if you’re already behind on payments, you likely won’t qualify for a lower interest rate.
Negotiating with a bank is challenging and usually involves numerous phone calls and a lot of patience. It’s crucial to remain courteous and persistent. Politely ask for help from everyone you speak with, but avoid sounding desperate. Clearly explain your situation, provide supporting documents, and assure the bank that you intend to stay in your home long-term.
If you need a temporary fix and want to stay in your home, many banks can be accommodating. Sometimes they may agree to add a few months of missed payments back onto the principal balance of your loan. Remember, it’s all about the financial bottom line for them. Remind them that helping you stay in your home means they’ll receive more money over time. Foreclosure auctions usually result in significant losses for the bank.
It seems obvious, but bankers sometimes forget this when they deny assistance to those in need. Remind them that a cooperative solution benefits everyone involved.
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 Frisco to find solutions to foreclosure problems.
We’ll let you know how we can help.