When you fall behind on your mortgage payments on your Boston 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.
There are a few options that can help you to avoid foreclosure in Boston and maybe even keep your house, even if you’re seriously behind in payments. Lots of properties in Boston have been lost to foreclosure, but there are many ways to avoid it.
Help, I’m Behind in My Mortgage Payments in Boston! 5 Things You Can Do To Help Your Situation
1. Bankruptcy:
Bankruptcy is typically considered a last resort option for individuals overwhelmed by debt. While it can be a useful tool to negotiate with multiple lenders simultaneously, it does not offer protection for your mortgage. Each lender will have a distinct approach to your situation, underscoring the importance of seeking high-quality professional assistance tailored to your specific needs.
2. Reaffirm:
Reaffirming your loan can be a strategic move in real estate investing, but it’s important to be aware of potential drawbacks. By reaffirming the loan, you are committing to additional payments, which could lead to unforeseen liabilities if your property is sold at auction, especially in states where this practice is permitted.
3. Exploring Making Home Affordable (MFA):
If you meet the criteria, you may qualify for assistance through the Making Home Affordable (MFA) program. Loans guaranteed by Fannie Mae or Freddie Mac are automatically considered for MFA, while other lenders have the option to participate.
Through MFA, you could benefit from reduced payments, lower interest rates, and potentially a decrease in the principal balance if your property’s value is less than the outstanding loan amount. If you’re facing unemployment, you might also be eligible for temporary payment suspension or reduction.
It’s important to note that MFA involves a significant amount of paperwork, as it is a government program. While it offers assistance, it’s not a handout – applicants are required to fulfill certain obligations to qualify for the benefits.
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 – but 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 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. If they have to sell your house at a foreclosure auction, they’ll 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. Borrow money from a private investor:
If you are struggling to keep up with your mortgage payments and are looking to sell your home quickly, our team is here to assist you.
Under certain circumstances, we may even offer solutions that allow you to remain in your current home.
Our services cater to homeowners in Boston who are facing foreclosure, providing tailored solutions to address their specific challenges.
Contact us today to learn more about how we can support you during this difficult time.