When you fall behind on your mortgage payments on your Metro Detroit 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 Metro Detroit and maybe even keep your house, even if you’re seriously behind in payments. Lots of properties in Metro Detroit have been lost to foreclosure, but there are many ways to avoid it.
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. You’d benefit from serious professional help – the best you can afford. Read about 10 things you should consider before filing for bankruptcy.
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.
3. Making Home Affordable (MHA):
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. Check our resources on the MHA website.
MFA is a government program, so be prepared to deal with lots of paperwork. It ain’t free money – you got to work for it and provide necessary docs to proof your hardship.
4. Negotiate with your lender:
Lots of banks 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 or put your payments on hold. Remember banks do not want to own a vacant property nor foreclosure on you if they don’t have to.
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, be upfront but don’t sound desperate. Explain your situation, offer supporting paperwork, and reassure the lender that you want to live in your home for the long term.
If you 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 balance of your loan. It’s all numbers 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, especially in declining market.
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 Metro Detroit to find solutions to foreclosure problems.
We’ll let you know how we can help. Fast Home Offer Guys is a real estate solutions company with its mission to help homeowners in tough situations like facing foreclosure. We have extensive real estate knowledge of the local Metro Detroit market, legal resources, and funds available to fix most real estate problems and buy your house for cash quickly.
When dealing with any house buying companies in the Metro Detroit area, you want to make sure you are dealing with a company that has a proven record. Fast Home Offer Guys is a local trusted real estate company that buy houses for cash fast.
Read more about behind in my mortgage payments and 6 ways to catch up.