When you fall behind on your mortgage payments, it can feel like you’re drowning in debt.
Even if you’re able to make your monthly payment, catching up on a past due balance can be an overwhelming challenge.
There are a few options that can help you to avoid foreclosure in Omaha and maybe even keep your house, even if you’re seriously behind in payments. Lots of properties in Omaha have been lost to foreclosure, but there are several key ways to avoid it.
Help, I’m Behind On My Mortgage Payments in Omaha! 5 Things You Can Do To Help Your Situation
1. Bankruptcy
This is usually the tool of last resort. However, 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 definitely challenging to face and some work to go through the process. And it won’t help you avoid your mortgage. But different lenders will treat your circumstances in their own unique ways, so you may want to consider this option, but just be sure to get 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 the MHA program. 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 may 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 isn’t free money – you gotta work for it.
4. Negotiate with your bank
Lots of lenders routinely offer some level of assistance. Talk with your lender to ask if you can get your interest rate reduced or get a temporary reduction in your payment.
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 won’t qualify for a reduction in interest rate.
You have to work to negotiate with your bank. Usually, it takes phone calls and the patience of a saint to get through the bureaucracy. Never, ever act rudely. 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 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.
5. Borrow money from a private investor
If you’re behind on your payments and need to sell fast, we can possibly help. In certain circumstances, we may be able to help you stay in your home. We work with homeowners in Omaha to find solutions to foreclosure problems.
We’ll let you know how we can help.