When you fall behind on your mortgage payments on your McAllen home, it can feel like you’re drowning , it can really be very stressful.
Even if you’re able to make your monthly payment, catching up on a past due balance can be a challenge, especially if you are facing some unexpected hardship.
There are a few options that can help you to avoid foreclosure in McAllen and maybe even keep your house, even if you’re seriously behind in payments. Lots of properties in McAllen have been lost to foreclosure, but there are many ways to avoid it. Keep on reading to find out some options you may have down the road.
Help, I’m Behind in My Mortgage Payments in McAllen! 5 Things You Can Do To Help Your Situation
1. Bankruptcy:
When you’ve exhausted all other options, bankruptcy may be the tool of last resort. If you’re burdened with overwhelming debt, bankruptcy can provide a way to negotiate with multiple lenders simultaneously. However, it’s important to note that bankruptcy requires a significant amount of effort and does not exempt you from paying your mortgage. Think of it as a temporary solution, similar to a band-aid, that offers a brief respite in certain situations. Each lender will handle your case differently, so it’s crucial to seek legal advice before proceeding with bankruptcy due to its serious and long-lasting implications, such as impacting your credit history.
If you are behind in mortgage and maybe facing tax liens or struggling to up-keep your house, a direct sale may work for your situation. Reach out to an investor that may buy your house and pay off the mortgage so you can get a fresh start.
2. Reaffirm:
This can be another card to play, but it may come with some unseen penalties. You should seek legal counsel to check your situation. 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 some other lenders choose to participate in MFA.
With MFA, your payments and/or interest rates might be lowered . 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 and it may be complicated to complete all the details.
If you just want to get rid of the problem and sell your house as is, a direct buyer such as Dolfin RGV may give you a fair cash offer for your house.
4. Negotiate with your bank:
When facing financial hardship, many lenders offer assistance options to help you manage your mortgage. Mortgage servicers are typically required to provide repayment or alternate solutions, such as lowering your interest rate or temporarily reducing your payments.
If you fall behind on payments, lenders may suggest refinancing your original loan. In such cases, qualifying for a lower interest rate could be challenging. Common alternatives include reinstatement (paying a lump sum of arrears), a payment plan (increased payments over a set period), deferral, or loan modification (adjusting loan terms for lower payments).
Negotiating with a bank requires perseverance and patience. Maintain a respectful demeanor, seek assistance from all contacts, and present your case with supporting documentation. Emphasize your desire to retain long-term homeownership.
If you seek a temporary solution to remain in your home, banks may show flexibility by adding missed payments to your loan balance. Highlight the mutual benefit of their assistance, as avoiding foreclosure benefits both parties financially.
While it may seem straightforward, interactions with banks can be complex. Diligence and a positive approach are key in navigating these processes effectively.
5. Work with a private investor:
If you’re behind on your payments and need to sell fast, we can help. Depending on you unique situation, you may walk away with money to get a fresh start. At Dolfin RGV we are familiar with the Valley market, we rutinely work in McAllen, Edinburg, Pharr, San Juan, Alamo, Mission, Hidalgo, Donna, Weslaco and the surrounding cities. Dolfin RGV has been around in the RGV for several years and we offer you our experience to help you find a solution to your foreclosure problem. We are a local family company out of McAllen, not a techie guy from out of State. If you want to talk to a real person, reach out. We speak Spanish, too.
We work with homeowners in McAllen to find solutions to foreclosure problems.
We’ll let you know how we can help.