When you fall behind on your mortgage payments on your Houston 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 Houston and maybe even keep your house, even if you’re seriously behind in payments. Lots of properties in Houston have been lost to foreclosure, but there are many ways to avoid it.
Help, I’m Behind on My Mortgage Payments in Houston! 5 Things You Can Do To Help Your Situation
1. Loan Modification:
You can talk to your lender to see if you would qualify for a loan modification to adjust the terms of your mortgage. You will need to show your lender that you have experienced financial hardship and that you are now capable of making monthly payments on your new mortgage terms. Essentially, you would be going through a similar qualification process as to when you initially took out your mortgage. If you do qualify for this process you can reduce your monthly payments, making it much easier for you to catch up on missed payments as well as get back to making your consistent monthly payment.
2. Repayment Plan:
When you have fallen behind on your mortgage payments but are now able to afford your payments, you may be eligible for a repayment plan. With this option, you can make payments to your past due amount and late fees over time. This will help you bring your loan current and resolve your delinquency.
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 mortgage payments and/or interest rate 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 mortgage payments temporarily suspended or reduced.
MFA is a government program, so be prepared to deal with lots of paperwork. It’s not 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 mortgage payments.
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.
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. Sell Your House To A Professional Home Buyer:
If you’re behind on your mortgage 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 Houston to find solutions to foreclosure problems. You can read more here on how to avoid foreclosure.
We’ll let you know how we can help.