When you fall behind on your mortgage payments on your Sicklerville 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. Structured payments after a bankruptcy declaration may not be much better. We’ve talked to many homeowners who choose this route only to find the payments unsustainable over the long run after declaring bankruptcy.
There are a few options that can help you to avoid foreclosure in Sicklerville and maybe even keep your house, even if you’re seriously behind in payments. Lots of properties in Sicklerville have been lost to foreclosure, but there are many ways to avoid it. The key is to get started in the process early. Check out my video above on the 8 best ways to prevent foreclosure in Sicklerville
Help, I’m Behind in My Mortgage Payments in Sicklerville! 5 Things You Can Do To Help Your Situation
1. Bankruptcy:
This is usually the tool of last resort. If you’re being crushed by lots of debt, bankruptcy can be a good way to negotiate with lots of lenders at once. It’s a lot of work, and it won’t help you avoid your mortgage. Different lenders will treat your circumstances in unique ways. There are some benefits and some negatives to declaring bankruptcy in Sicklerville. Some of the benefits include the fact that usually you are able to stay in your home. The negatives include that your payment every month may be significantly higher than it was in the past. Also, it may not feel like you are in control of much of the situation anymore once the bankruptcy attorney begins to dictate what is happening.
You’d benefit from serious professional help – the best you can afford.
2. Reaffirm:
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 some states where it’s allowed, an affirmation can create additional liabilities if your property is auctioned. Not a very common thing in New Jersey to my knowledge but something to talk to your mortgage company about regardless.
3. Making Home Affordable (MFA):
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 MFA.
With MFA, 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 is a great tool for homeowners who are struggling to make their payments. 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.
MFA is a government program, so be prepared to deal with lots of paperwork. It ain’t free money – you gotta work for it.
4. Negotiate with your bank:
Lots of lenders routinely offer some level of assistance. 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. Banks are not looking to foreclose on properties because it costs them time and money so it may be a good idea to reach out to the bank and try to work something out.
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. 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.
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 Sicklerville to find solutions to foreclosure problems.
We’ll let you know how we can help.