When you fall behind on your mortgage payments on your Baton Rouge home, 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 with credit cards, car payments, and normal expenses to pay.
There are a few options for you to avoid foreclosure in Baton Rouge and maybe even keep your house, even if you have missed a couple payments. Many properties in Baton Rouge have been lost to foreclosure, but there are several ways to avoid it.
Help, I’m Behind in My Mortgage Payments in Baton Rouge! 5 Things You Can Do To Help Your Situation
Do not take this option lightly. It will wreck your credit and is usually the tool of last resort. If you’re being crushed by mountains of debt, bankruptcy can be a good way to negotiate with all your lenders at once. It’s a lot of work, and it won’t help you avoid your mortgage. It also will make getting loans in the future very difficult. These loans include credit cards, mortgages, cars, and even in some cases rentals. Different lenders will treat your circumstances in unique ways. You’d benefit from serious professional help (attorneys)– 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. It comes into play after you file chapter 7 bankruptcy. In many cases, the lender will change the terms of the loan, but it could be an option for you to keep your house after bankruptcy.
3. Making Home Affordable (MHA):
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 up to $10,000 (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. This is one of the best avenues to get help, but it doesn’t come without work.
MFA is a government program, so be prepared to deal with lots of paperwork. There is no such thing as free money, and when working with the government, you trade mounds of debt for mounds of paperwork.
4. Negotiate with your bank:
This is one of our favorite options. Many lenders offer some level of assistance. You have to work hard at it by calling them frequently and staying on top of them, but you might be able to get your interest rate reduced or a temporary reduction in your payment.
Most of the time, lenders will want to steer you to refinance your loan, which is great if you can, but if you are a few payments behind, you probably won’t qualify for a reduction in interest rate. The other option is extend the term of the loan, so if you have 20 years left on the mortgage, you may be able to make it a 30 year again which will lower your monthly 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.
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. They don’t want your house, they want your money. If they have to sell your house at a foreclosure auction, they may 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.Sell your house to 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, although we usually prefer to buy them. Even if you don’t want to sell, we can help you work with your banks or help with the paperwork to get your loan modified.
We work with homeowners in Baton Rouge to find solutions to foreclosure problems.
We’ll let you know how we can help.