When you fall behind on your mortgage payments on your Minnesota 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 Minnesota and maybe even keep your house, even if you’re seriously behind in payments. Lots of properties in Minnesota have been lost to foreclosure, but there are many ways to avoid it.
Help, I’m Behind in My Mortgage Payments in Minnesota! 5 Things You Can Do To Help Your Situation
1. Bankruptcy:
Bankruptcy is often seen as a final option for those who are overwhelmed by debt. However, it can be a useful tool for negotiating with multiple lenders simultaneously. While it can be a lot of work and may not offer any relief for mortgage payments, each lender will handle your situation differently. Seeking professional assistance is highly recommended, and the level of help you receive should be as comprehensive as your budget allows.
2. Reaffirm:
Reaffirming a loan can be a useful strategy, but it’s important to consider the potential drawbacks. Essentially, reaffirming a loan means committing to continued payments on the debt. Depending on the state in which you reside, reaffirming a loan may lead to additional liabilities if your property is ultimately auctioned off. It’s important to carefully weigh the pros and cons before making a decision about whether or not to reaffirm a loan.
3. Making Home Affordable (MFA):
The MHA (Making Home Affordable) program is designed to provide assistance to homeowners who are struggling to make their mortgage payments. If your mortgage is backed by Fannie Mae or Freddie Mac, you may be eligible for MHA. Other lenders may also offer assistance through the MFA (Mortgage Forgiveness Assistance) program.
MFA offers a range of options to help reduce the financial burden of mortgage payments. This may include lowering your interest rates, reducing your monthly payments, and even forgiving a portion of your principal balance if the value of your home is less than what you owe. In some cases, if you have become unemployed, you may also be able to suspend or reduce your mortgage payments temporarily.
It’s important to note that participating in MFA requires significant paperwork and effort on your part. Although the program is offered by the government, it is not free money, and you will need to work diligently to meet the requirements and provide all the necessary documentation. However, if you are eligible and committed to the process, MFA can be a valuable resource to help you stay in your home and avoid foreclosure.
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:
We offer assistance to homeowners in Minnesota who are struggling with foreclosure issues. If you’re falling behind on payments and need to sell quickly, we can provide support. Additionally, in certain cases, we may be able to help you remain in your home. Our goal is to find the right solution for your specific situation. Contact us today, and we’ll work with you to determine how we can best assist you.