What can I do? I’ve fallen behind the mortgage payments?

We know it can feel terrible when you fall behind in my mortgage payments”. It feels like you are going to drown in thee debt.

The worst is that the threat of foreclosure starts to loom around. However, there’s something you can do to avoid foreclosure in Pensacola.

So, here’s what you can do –

  1. File for Bankruptcy

If you are under a lot of debt, then filing for bankruptcy is generally a good idea. Although it won’t help you avoid the lenders, but it can prove to be a good way to negotiate with the lenders all at once. However, don’t forget that not all lenders will treat your circumstances in the same manner, and it can be the right time to go for good professional help.

  1. Reaffirm the loan

In a layman’s terms reaffirming a loam means that you’re basically asking for an additional commitment to pay the loan. Although, reaffirm a loan can be the best idea under the situation, but it can bring along quite a number of unwanted enemies as well; like additional liabilities, which is the case in many states, when the property is auctioned.

  1. MFA or Making Home Affordable

It all depends whether your mortgage qualifies for it or not. For e. g. loans backed by Fannie Mae or Freddie Mac are surely considered for MHA, but other lenders may also choose to participate in MFA. Don’t forget that if you go for MFA, the payments and/or interest rates can easily be lowered. Or even better, you can expect to see the principal balance lowered as well; but only in case your home is worth less than you owe. And, if you are unemployed, there are chances that you will get your payments temporarily suspended or reduced.

As a government program, MFA requires lots of paperwork. So, be ready for it.

  1. Bank negotiations

If you are ready to work hard for it, most of the lenders are ready to offer some level of assistance. Who knows, you might be able to get a temporary reduction in your payment or you interest rate reduced, as well. Lenders will want to steer you to refinance your loan, however by the time you’re only a few payments behind, you probably don’t qualify for a reduction in interest rate.

Negotiating with banks is a tough job. You need to work hard for it. Therefore you need to be patient, and never ever act rude. Remember

  • Don’t sound desperate, but try to ask for help from everyone you speak with

  • Explain your situation, offer supporting documents.

  • Reassure the bank that you want to live in your home for the long term.

Most banks can be forgiving if you are in need of a temporary fix to stay in your home. In fact, they might even add a few months of payments back onto the primary balance. So don’t forget to remind them that you need their help. Also, the fact that if they have to sell your house at a foreclosure auction, they’ll take a huge loss makes it a better idea for them to help you.

  1. Take money from a private investor:

Last option that’s left with you is to take help from a private investor. However, remembers that if you want to sell your home fast, we are always here for help. If the circumstances permit, we may even be able to help you stay in your home. We find solutions to foreclosure problems by working with homeowners in Pensacola.

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