When you fall behind on your mortgage payments on your Greenville 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 stop foreclosure in Greenville and possibly keep your house, even if you’re seriously behind in payments. Lots of properties in Greenville have been lost to foreclosure, but there are many ways to avoid it. Let’s cover how you can stop foreclosure now and save your credit!
1. Bankruptcy:
This is usually the tool of last resort. If you’re like many Americans and are being crushed by lots of debt, bankruptcy can be a good way to negotiate with multiple lenders at once. Currently, worrying about how you got into this situation isn’t worth your time. Focus on your situation and begin taking steps to remediate the problem.
It’s a lot of work to go through bankruptcy, and it won’t help you avoid your mortgage, but it can be worthwhile. Different lenders will treat your circumstances in unique ways. If this is a path you’re considering taking, you’d benefit from serious professional help so get the best you can afford!
2. Reaffirm:
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 on top of your current mortgage. In some states where it’s allowed, an affirmation can create additional liabilities if your property is auctioned. While this can stop foreclosure, you have to weigh the risks and decide if it’s a path you’re willing to take. One slip up and you could be saddled with debt that will stick with you after foreclosure.
3. Making Home Affordable (MFA):
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 may choose to participate in MFA. With MFA, 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 be able to get your payments temporarily suspended or reduced. MFA is a government program, so be prepared to deal with lots of paperwork and red tape. It ain’t free money, but the MFA can stop foreclosure, so it’s a tool to look into. Just be ready to put in some work!
4. Negotiate with your bank:
Lots of lenders routinely offer some level of assistance and you might be able to get your interest rate reduced or a temporary reduction in your payment. A lot of times the reduced amount will be added on to the principal of your loan. Lenders tend to steer you in the direction of refinancing your loan, but by the time you’re a few payments behind you probably won’t qualify for a reduction in interest rate.
You have to work really hard to negotiate with a bank. Usually, it takes a lot 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 and live in your home for the long term. Help them understand that it’s in their best interest to stop foreclosure proceedings and let you 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 if you’ve been in good standing up to this point. 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 on your payments and need to sell fast so you can stop foreclosure and save your credit, we can help. In certain circumstances, we may even be able to help you stay in your home. We work with homeowners in Greenville to find solutions to foreclosure problems. We’ll let you know how we can help.