Some homeowners are starting to fall behind on your mortgage payments on your Detroit home. This can often feel very overwhelming, almost like you are drowning in debt.
You may even be able to make the monthly payment, but only catching up on a past due balance can be a challenge.
Luckily, there are still some options that can assist you to avoid foreclosure in Detroit and hopefully even keep the home, and this can even be in the case that you are behind in more than just a few payments. There are many properties in Detroit have been lost to foreclosure, however you can avoid it through some of the ways I’ll describe below.
Help, I’m Behind in My Mortgage Payments in Detroit! 5 Things You Can Do To Help Your Situation
1. Bankruptcy:
We usually don’t recommend this one right away and probably should be used as a last resort. If you are being drowed under a lot of debt, bankruptcy can help you to negotiate many lenders at once. However it’s not a walk in the park, it is a lot of work and you won’t be able to avoid the mortgage. Different lenders may treat the circumstances you’re going through in unique ways. Also we recommend getting serious professional help with this option – the best you can afford.
2. Reaffirm:
To reaffirm the loan is where you basically sign a new agreement that establishes you as personally liable on that loan again. This potentially may be an ok option to choose, but it may come with some unseen penalties. In some states where it’s allowed, you could incur some additional liabilities if your property which has been reaffirmed is auctioned.
3. Making Home Affordable (MHA):
It is possible that you could participate in MHA if the loan on your home qualifies. If your mortgage is backed by Fannie Mae or Freddie Mac then it has to be considered for MHA, plus other lenders can elect to participate in MHA as well.
What is the MHA program. Well your payments and/or interest rates could be reduced – and this can even mean that the principal balance can be reduced as well, that is if your home value is higher than what is still owed. If you have become unemployed, you also could get the payments potentially temporarily suspended or reduced.
MHA is a program that is run by the government, so it’s guaranteed to have lots of paperwork that you’ll have to do. It ain’t free money – you gotta work for it.
4. Negotiate with your bank:
You should also talk to your bank. Often, the bank may offer some type of assistance. Again, you’ll have to work hard at it, but you could work with them to get payments lowered temporarily or even your interest rate reduced.
Often, banks will try to point you in the direction of refinancing your loan – but at this point if you’re already behind on some payments, odds are you won’t qualify for the refinance or the interest rate reduction.
You will have to work extremely hard with the lender to negotiate with them. They are not in the business of offering handouts or giving away money. Usually, it can take many many calls and patience of a saint to get through the bureaucracy. You don’t want to ever act rude and you’ll also want to ask for help from each person you talk to, but you don’t want to sound too desperate. If you explain your situation, offer documents that support why you’re in your current situation, and reassure the lender that you’re ultimate goal is to live in your home for the long term, they might work with you.
Plus, if you only need something temporarily and still want to stay in your home, most banks may be forgiving. It is possible that they might be willing to push out your payment by few months and then add these back onto the primary balance of your loan. It is nothing but dollars and cents to them, so talk to them and tell them that you require their assistance to give them more money in the long hull. If they must sell your house at a foreclosure auction, they will be taking a huge loss.
It seems obvious and like a no-brainer, but for some reason bankers seem to forget that when they are telling someone no that is in need of help.
5. Sell to a private investor:
If you’re behind on your payments and need to sell fast, we can help. If all of the above options fail and you just want out of your situation and a clean slate, you can sell to a Metro Detroit home buyer. We will pay cash and can close quickly. This could give you the cash you need to get out of debt or at least unbury yourself a little.
In certain circumstances, we may even be able to help you stay in your home.
We work with homeowners in Detroit to find solutions to foreclosure problems.
We’ll let you know how we can help.