When you fall behind on your mortgage payments on your Willingboro 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. It is staggering how quickly the late fees can pile up to make the one or two missed payments seem more like a mountain than a molehill. Structured payments after a bankruptcy declaration may not be much better. This is an option for a lot of homeowners that may help to delay a foreclosure, but ultimately this will hurt your credit and may make it harder to get a home in the future. 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 Willingboro and maybe even keep your house, even if you’re seriously behind in payments. Lots of properties in Willingboro 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 Willingboro
Help, I’m Behind in My Mortgage Payments in Willingboro! 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. This is not advice and you should definitely go out to check with a professional to see if this is the right choice for you. We know, it’s a lot of work, and it won’t help you avoid your mortgage.
You may be able to work with some of the lenders. Different lenders will treat your circumstances in unique ways. There are some benefits and some negatives to declaring bankruptcy in Willingboro. Some of the benefits include the fact that usually, you are able to stay in your home. While you are staying in your home you may have to pay higher than normal monthly payments, which may make it difficult to remain in the 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. It is definitely worth reaching out to your lender to see if this is something that they would consider.
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. The great thing about the Making Home Affordable program is that it can allow you to stay in your home with a lower monthly payment. This is a great outcome.
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:
The best option is to reach out to someone you know for some type of a loan. Use your network to find someone who has money and is willing to take that money over time with interest. Make sure that this is a loan that you can afford otherwise you will be losing your home and your friendship. After you explore your network there are other options for lenders, but really make sure that you are able to make the monthly payments before deciding to pursue any additional lenders.
We buy houses in Willingboro NJ
If you’re behind on your payments and need to sell fast, we can help. We buy houses either via cash or terms. We are able to help in all situations because of this. We buy houses in Willinboro NJ even if they are facing foreclosure, need a lot of work or don’t have a lot of equity. We can make it happen.
We work with homeowners in Willingboro to find solutions to foreclosure problems.
We’ll let you know how we can help.