If you find yourself falling behind on your mortgage payments in Forked River, it is important to address the issue promptly to prevent further financial strain. The prospect of catching up on a past due balance may seem daunting, but there are options available to help you overcome this challenge.
There are a few options that can help you to avoid foreclosure in Forked River and maybe even keep your house, even if you’re seriously behind in payments. Lots of properties in Forked River have been lost to foreclosure, but there are many ways to avoid it.
Struggling with Mortgage Payments in Forked River? Here are 5 Solutions to Help You
1. Bankruptcy:
Bankruptcy should be considered as a last resort option when you are overwhelmed with debt. It can provide an opportunity to negotiate with multiple lenders simultaneously. However, it’s important to note that bankruptcy cannot help you avoid your mortgage. Each lender may have different approaches to handling your situation. Seeking professional assistance is highly recommended, preferably from reputable experts within your budget.
2. Reaffirm:
Reaffirming the loan can be a smart move in certain situations, although there are potential drawbacks to consider. By reaffirming the loan, you are making a renewed commitment to repay the debt. However, it’s important to note that in states where it’s permitted, reaffirming the loan may expose you to additional liabilities if your property goes to auction.
3. Making Home Affordable (MFA):
If you qualify for a mortgage, there is an opportunity for you to take part in the MHA program. This program requires that loans backed by Fannie Mae or Freddie Mac be considered, and other lenders have the choice to participate in MFA.
Through MFA, you may have the chance to lower your payments and/or interest rates, and in some cases, even reduce the principal balance if your home’s value is less than the amount you owe. If you are currently unemployed, you might be eligible to have your payments temporarily suspended or reduced.
MFA is a government initiative, so expect to deal with a significant amount of paperwork. It is important to note that this is not free money – you will need to put in the effort to qualify for and benefit from this program.
4. Negotiate with your bank:
When facing financial hardship, many lenders are willing to provide assistance to borrowers. While it requires effort on your part, there is a possibility of negotiating a reduced interest rate or obtaining a temporary payment reduction.
It is common for lenders to suggest refinancing as a solution. However, if you have already fallen behind on payments, you may no longer qualify for an interest rate reduction through this method.
Negotiating with a bank requires persistence and patience. It often involves making numerous phone calls and navigating through bureaucratic processes. It is crucial to maintain a respectful demeanor and seek assistance from every contact. While explaining your situation, provide supporting documents and emphasize your long-term commitment to your home.
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.
In certain circumstances, we may even be able to help you stay in your home.
We work with homeowners in Forked River to find solutions to foreclosure problems.
We’ll let you know how we can help.