Life happens, and challenges exist for all of us from time to time, whether it be a difficult work assignment, a health condition, or facing foreclosure. If you miss a few mortgage payments and happen to fall behind on your mortgage payments, especially in Columbus, OH, it can feel as though you have no options. Don’t allow the metaphorical walls to close in on you, but instead look for solutions early, as the timeline proceeds there are less and less options.
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Declaring bankruptcy is an option that many of our clients have considered, but bankruptcy can be tricky to navigate as well, seeing as many homeowners still had to pay an unsustainably high monthly payment. So not only was their credit score damaged badly, but they were also STILL having trouble with making their monthly payments.
We have talked with several homeowners in the Columbus, OH market on how they can try and navigate missed payments to avoid foreclosure in Ohio. While facing foreclosure is a nightmare to navigate, there are also a lot of ways to avoid foreclosure in general. You still have options available to you if you’ve missed a couple of mortgage payments.
Check out my video above on some of the best ways to prevent foreclosure in Columbus OH.
5 Options if You’re Facing Foreclosure in Columbus, OH
1. Declare Bankruptcy:
I know I just mentioned the negatives of bankruptcy in this situation, and I consider this a last resort personally, but if you’re being crushed by lots of debt, bankruptcy can be a good way to negotiate with lots of lenders at once. You are going to have to deal with a ton of paperwork, you will still need to deal with your mortgage, but your payments will be re-structured. Again, don’t fall into the trap of thinking re-structured means you will be paying less! Sometimes the monthly payments go up, as different lenders handle bankruptcy in unique ways. There are some benefits and some negatives to declaring bankruptcy in Columbus, OH, just like any other location. You have a combination of monthly bills, stress from dealing with all of your creditors, it can be difficult to sustain. If you need help, even just to talk through your situation with someone, give us a call.
2. Borrow Money Within You Network:
This is no time for pride, you need to get your personal finances together and chances are, you have a few connections that may have resources to offer you a short term loan with more favorable rates than a bank or typical lender. This is a great option if you are able to find someone to work with in your network when you are behind on your mortgage payments in Columbus, OH.
3. MHA: Making Home Affordable:
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. This program is something you should start early in the process again. Remember, these programs are very slow-moving so if you are running out of time and facing foreclosure then these options may not work for you.
MHA is a government program, so be prepared to deal with lots of paperwork. However, if you can cope with the homework, then this program can be a great solution if you’re behind on my payments in Columbus, OH.
4. Negotiate with your bank:
It depends on your lender, but there is often different levels of assistance. You may be able to get your interest rate reduced or a temporary reduction in your payment, seeing as banks are not looking to foreclose on properties because it costs them time and money. They will want to work with you on some level to try and get a good long term solution.
Most of the time, lenders who understand you’re facing foreclosure recommend refinancing your loan – but if you’re already a few payments behind, you won’t qualify for a reduction in interest rate. Even more often homeowners will try to do a loan modification at the advice of the bank and this may or may not be the best option for you. If you’d like to discuss your options then you can reach out to us and we’d be happy to help.
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. It can be a process if you are behind on your mortgage and worried about foreclosure in Columbus, OH but working with the bank is one of your best options to avoid foreclosure in Columbus.
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.
5. Sell your Property:
One of the easiest options that you can pursue when behind on your payments, especially in Columbus, OH is to sell your property to me. We work with people in all situations and a property in any condition. If you are looking for a simple solution to your problem property then you should definitely reach out to us.
If you’re behind on your payments and need to sell fast, we can help.
We work with homeowners in Columbus, OH to find solutions to foreclosure problems.