When you fall behind on your mortgage payments on your Little Rock home, it can be one of the scariest feelings in the world.
If you end up being able to start marking your monthly payment, the difficult part for most people is catching up on all the past due payments that were missed.
There are a few options to help you potentially avoid foreclosure in Little Rock. We have even seen people keep their house when they are behind on the mortgage. We have seen many people lose their houses due to foreclosure in Little Rock, but that is because they were unprepared and did not have the correct knowledge.
Help, I’m Behind in My Mortgage Payments in Little Rock! 5 Things You Can Do To Help Your Situation
This may be first on the list but we recommend that this be the last option to consider. If you’re experiencing a ton of debt from multiple lenders then claiming bankruptcy can be a consolidated method to deal with it all at once. There is a lot of effort that goes into this and ultimately it won’t get you past your mortgage. Different lenders will treat your circumstances in unique ways. You’d benefit from working with a professional. Get the best for your budget.
This is a very good option but it does come with some hidden drawbacks. 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 (MFA):
In order to do this your mortgage has to qualify. Any loans backed by Fannie Mae or Freddie Mac must be considered for MHA, and other lenders choose to participate in MFA.
You could think of this as a relief program. When you are in MFA you could see that you payments/interest could be reduced. If you become unemployed, you could get your payments put on hold or even lowered.
Keep in mind that MFA is a government run program. That means that it usually takes longer and there is a lot of paperwork associated with it! that is not a bad trade-off though.
4. Negotiate with your bank:
Most reputable lenders will offer some assistance to their borrowers. You really have to make you case, but we’ve seen people get their interest rates reduced or their payments reduced.
Lenders preference will be to have you refinance the loan – but the problem with this is if you are already behind on payments you will not be able to do this.
I’ll be honest right now, negotiating with a bank is not easy. You will be making a lot of calls and it will take some time to get connected to a decision maker. Always be polite and keep your cool. Explain your situation to everyone you speak with, be prepared with all of your documentation, and be sure to let them know that you plan to stay in the 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 – if you can prove it is temporary. Often times they will add on some time on to let you recover and get back on track. Remember, they will be taking a huge loss by selling your house at auction so they prefer to get you back on track with paying the mortgage.
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 Little Rock to find solutions to foreclosure problems.
We’ll let you know how we can help.