When you fall behind in your mortgage payments on your Baltimore 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 overwhelming challenge.
Even if you’re extremely behind on payments, there are a few options that can help you to avoid foreclosure in Baltimore and maybe even keep your house. Lots of properties in Baltimore have been lost to foreclosure, but there are many ways to avoid it.
This is usually the tool of last resort. If you’re being crushed by lots of debt, bankruptcy can be a good way to negotiate with a lot 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 lenders choosing to participate in MFA, like Fannie Mae or Freddie Mac, must be considered for MHA.
With MFA, your payments and/or interest rates might be lowered. If your home is worth less than you owe, even the principal balance may decrease. 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.
4. Negotiate with your bank:
Lots of lenders routinely offer some level of assistance. You have to work hard at it, 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. Unfortunately, by the time you’re a few payments behind, you probably don’t qualify for a reduction in interest rate.
Usually negotiating with a bank takes lots of calls and patience to get through the bureaucracy. 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.
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 Baltimore to find solutions to foreclosure problems. We’ll let you know how we can help.