“Help I’m behind in my mortgage payments!” What do you need to do when you fall behind in your mortgage payments? When you fall behind in your mortgage payments on your AZ home, it can feel like you’re drowning in debt. The worst thing to do is to wait and let time go by! “Being behind in my mortgage payments is embarrassing and I just want to hide from the world.” You cant hide and hope the problem away!
Even if you’re able to make your monthly payment, catching up on a past due balance can be an overwhelming challenge. When people call us and say “I’m behind in my mortgage payments” the first thing we need to do is figure out why, and next figure out a solution to avoid foreclosure. Sometime homeowners just need a little time and help to get things back on track. Other times its best for a homeowner to sell and do things different to create a better lifestyle with less stress. Everyone’s situation, wants, and needs are different.
There are a few options that can help you to avoid foreclosure in AZ and maybe even keep your house, even if you’re seriously behind in your mortgage payments. Lots of properties in AZ have been lost to foreclosure, but there are many ways to avoid it. “Wait I’m behind in my mortgage payments and need help now!” Read on, help is on the way!
Help, I’m Behind in My Mortgage Payments in Arizona! 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.
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 (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 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.
MFA is a government program, so be prepared to deal with lots of paperwork. It ain’t free money – you gotta work for it to stop the foreclosure sale,
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 payment. If you are behind on your mortgage payments the bank is skeptical if you can actually make future payments. This is the catch 22 when you are working with your bank to stop foreclosure.
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. The late mortgage payments have a negative effect on you credit score. This in turn makes qualifying for a loan refinance almost impossible. Banks most of the time only see numbers and not a homeowner’s ability to pay their monthly mortgage payments.
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. Let the bank know the last thing you want them to do is foreclose on you!
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. 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 Arizona to find solutions to foreclosure problems.
We’ll let you know how we can help.