I’m behind on my mortgage payments in Louisville – help!

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Behind on your mortgage? Read this article for a few tips on what you can to do prevent and avoid foreclosure

Help! I’m behind on my mortgage payments in Louisville! Don’t worry, we know it can feel like you’re drowning in debt, but you do have options and we can help!

Even if you’re able to make your monthly payment, catching up on a past due balance can be an overwhelming challenge.

There’s a few options that can help you to avoid foreclosure in Louisville and possible even keep your house, even if you are way behind on payments. Lots of properties in Louisville have been lost to foreclosure, but there are many ways to avoid it.

1. Bankruptcy:

This is usually the last resort you want to take. If you’re overwhelmed with lots of debt, bankruptcy can be a good way to negotiate down that debt with lots of lenders at once. It can be a lot of work, and it may not help you save your house either.  Different lenders will treat your circumstances in unique ways. You would greatly benefit from the help of a professional bankruptcy attorney.

2. Reaffirm:

This can be a good card to play, but it may come with some unforeseen penalties. Basically, reaffirming the mortgage loan is an additional commitment from you to pay it back. In some states where it’s allowed, an affirmation can create additional liabilities if your property is auctioned off to sell it.

3. Making Home Affordable (MHA):

If your mortgage qualifies, you might be able to participate in the Making Home Affordable program (MHA).   Any loans backed by Fannie Mae or Freddie Mac must be considered for MHA, and other lenders choose to participate in MHA.

With MHA, 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 even be able to get your payments temporarily suspended or reduced.

MHA is a government program, so be prepared to deal with lots of paperwork. To take advantage of it you have to work for it!

4. Negotiate with your bank:

Lots of lenders routinely offer some level of assistance. You have to work hard at this too, but you might be able to get your interest rate reduced or a temporary reduction in your mortgage payment.

Typically, lenders will want to get you to refinance your mortgage loan, however, by the time you’re a few payments behind you probably don’t qualify for a reduction in interest rate.

You have to work really hard to negotiate with a bank. Usually it takes lots of calls and patience to get through the bureaucracy.  Even so, make sure you never act rude to the people on the other line trying to help.  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 and get caught up on your payments!

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 it’s more beneficial for you and them if you can get caught up and they don’t have to lose even more money going through the foreclosure auction process.

That may sound obvious, but for some reason bankers seem to forget it when saying no to someone in need of help.

If you simply can’t afford to stay in the house any longer and want to avoid foreclosure, you can simply give the house back to the bank as a “deed in lieu of foreclosure”.

5. Borrow money from a private investor:

If you’re behind in 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 in Louisville to find solutions to foreclosure problems.

Give us a call now at 502-255-2035 or
fill out the form to get started!

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