When you fall behind on your mortgage payments on your Portland 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 Portland and maybe even keep your house, even if you’re seriously behind in payments. Lots of properties in Portland have been lost to foreclosure, but there are many ways to avoid it.
Help, I’m Behind in My Mortgage Payments in Portland! 5 Things You Can Do To Help Your Situation
1. Bankruptcy:
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 lots 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.
2. Reaffirm:
Opting for reaffirmation can be a strategic move, but it’s essential to be aware of potential hidden drawbacks. Essentially, reaffirming the loan means making an additional commitment to fulfill the payment obligations. While it might be allowed in certain states, it’s crucial to understand that doing so could expose you to additional liabilities, especially if your property ends up being auctioned.
Reaffirming a loan can offer advantages, such as maintaining a positive credit history and retaining ownership of the property. However, borrowers must exercise caution and carefully assess their financial situation before proceeding with this decision.
3. Making Home Affordable (MFA):
If you meet the eligibility criteria, you could be eligible for the Mortgage Home Affordable (MHA) program, which offers assistance for qualified mortgages. The MHA program considers all loans backed by Fannie Mae or Freddie Mac, and some other lenders also participate in this initiative.
Through the MHA program, you may have the opportunity to benefit from reduced mortgage payments and/or lower interest rates. In certain cases where the value of your home is less than the outstanding loan amount, the program might even consider reducing the principal balance. For homeowners facing unemployment, temporary suspension or reduction of mortgage payments might be available.
It’s important to note that MFA (Mortgage Home Affordable) is a government program, and as such, it involves a substantial amount of paperwork. While it can provide valuable assistance, it is not a handout of free money. To take advantage of MFA benefits, you need to actively participate and fulfill the necessary requirements.
The MHA program strives to alleviate financial burdens for homeowners, but it requires dedication and effort on the part of the applicants. By providing a helping hand during challenging times, MHA aims to support homeowners in their journey towards sustainable mortgage solutions.
Remember, before applying for the MHA program or any other government assistance, it is essential to thoroughly understand the eligibility criteria, documentation requirements, and the overall process. Seeking guidance from housing counselors or professionals can help navigate the complexities and ensure a smoother application process.
Overall, if you qualify for MHA, it could offer valuable relief in managing your mortgage and potentially improve your financial situation. By exploring available government initiatives like MHA, you can take proactive steps towards securing your home and achieving greater stability in your homeownership journey.
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’re behind on 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 Portland to find solutions to foreclosure problems.
We’ll let you know how we can help.