When you realize I’m behind in my mortgage payments on your Nashville 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 Nashville and maybe even keep your house, even if you’re seriously behind in payments. Lots of properties in Nashville have been lost to foreclosure, but there are many ways to avoid it.
Help, I’m Behind in My Mortgage Payments in Nashville! 5 Things You Can Do To Help Your Situation
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.
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 Fannie Mae or Freddie Mac must be considered for MHA, and other lenders 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. It ain’t free money – you gotta work for it.
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. Plus when you refinance the closing costs and fees will be several thousand dollars. Some homeowners will roll the refinance fees back into the new loan but that means they will owe even more on the home.
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. Talk to a real estate investor:
Are you thinking I’m behind in my mortgage payments and I need to sell fast, we can help. If you are 2 mortgage payments or more behind, call us immediately. Every day counts and everyday interest and penalties are added to your bill. Don’t wait until you get the foreclosure letter from your lender. At that point, third party foreclosure attorneys take over the servicing of your loan and their fees of several thousand dollars are added to your bill and your foreclosure auction date is established. You do not want to lose your home to the public auction block which will decimate your credit rating. Even at this point, we can still help you and bypass the foreclosure auction.
We work with homeowners in Middle Tennessee to find solutions to foreclosure problems. If you would like to know more about Southern Homes Investments and what we do to help our clients in difficult financial situations with their homes, please visit our website.
We’ll let you know how we can help.
Give us a call now at (615) 235-0612 or
fill out the form on this website to get started.
Disclosure: David Wright is a licensed real estate agent in Tennessee and this article is not a solicitation to list your house.