It can feel like you’re drowning in debt when you fall behind on your mortgage payments. Catching up on past due balances can seem like a daunting task even if you are making your regular payments.
There are options that can help you to avoid foreclosure in Massachusetts and hopefully help you keep your house, even if you’re seriously behind in payments. A lot of properties in Massachusetts have been lost to foreclosure, but thankfully there are many ways to avoid it. The problem is that most homeowners think they are alone in this fight and don’t know where to look.
Help, I’m Behind on My Mortgage Payments in Massachusetts! 5 Things You Can Do Right Now!
This should be your 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.
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.
4. Negotiate with your bank:
You may qualify for a mortgage forbearance where you can defer payments for 3 to 6 months and not be penalized for it. Your bank may also be willing to lower your interest rate to help you afford your monthly mortgage.
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.
Banks can be very difficult to work with. Usually, it takes lots of calls and patience to get someone on the line that is willing to help you. 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.
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 to sell their home fast in Massachusetts
We’ll let you know how we can help and guide you in the right direction.