Once you start falling behind on mortgage payments in El Paso, you might feel as if you are overwhelmed with debt.
Playing catch-up on balances owing can be daunting, even if you have the ability to make monthly payments.
There are several options available that are capable of helping you bypass foreclosure. You might be able to hold onto your house, no matter how behind you are on payments. Many El Paso properties have succumbed to foreclosure, however, that doesn’t mean there aren’t ways of avoiding it.
Five Options at Your Disposal When You Fall Behind on Mortgage Payments
This option tends to be a last resort tool. If you are overwhelmed with debt, then bankruptcy can help you negotiate with multiple vendors simultaneously. The process will not help you with your mortgage payments. Various lenders will assess each person’s circumstances differently. You would prosper from getting professional help.
This option might come with unexpected penalties. Essentially, loan reaffirmation is an extra commitment of payments. In the states it is allowed in, affirmations can result in extra liabilities once a property gets auctioned off.
3. Making Home Affordable (MFA):
MHA (Making Homes Affordable) – assuming your mortgage is eligible, you may have the ability to engage in MHA. Loans supported by Freddie Mac or Fannie Mae warrants MHA consideration. Other lenders may opt to engage in MHA.
As far as MHA is concerned, interest rates or payments may be lowered, in addition to a principal balance (assuming your home isn’t worth more than whatever you owe). Unemployed individuals may not have the ability to have their payments reduced or temporarily suspended.
Because it’s a government-backed program, you need to be ready to handle a bevy of paperwork when it comes to MHA. You’re going to have to work for this money – it isn’t free.
4. Negotiate with your bank:
Many lenders routinely provide some form of assistance. You’ll need to work for it, but it is possible to get interest rates reduced. You might even get a short-term reduction on the amount owing.
For the most part, lenders will steer you towards loan refinancing. However, after you have fallen behind on several payments, you likely won’t qualify for interest rate reductions of any sort.
You’ll have to put up a fight when it comes to bank negotiations. It usually involves many calls, as well as the patience that comes with the accompanying bureaucracy. That is not an excuse to be rude, though. Seek help from the people you engage with, but without sounding desperate. Discuss your situation, provide supporting documentation, and give the banks reassurance that you’re not leaving town anytime soon.
If you need a short-term fix, and would rather remain in the home, most financial institutions will be forgiving. They may be open to adding several months’ worth of payments onto your loan’s primary balance. Everything comes down to money for banks. As such, give them a reminder – that their help will result in more money over the long haul. If your house ends up getting sold at some foreclosure auction, the bank will end up taking a big loss. Bankers sometimes forget this before rejecting someone’s need for help.
5. Borrow money from a private investor:
If you have fallen behind on payments, and would like to sell your home as quickly as you can, we can be of assistance.
In several circumstances, we might have the ability to help keep you in the property.
We work alongside El Paso homeowners and help them resolve foreclosure issues.
We will explain how we go about servicing you.