Falling behind on your mortgage payments on your Kenosha-Racine home can be a stressful time. It can feel that you can’t get out of mounting debt. Every month when the mortgage payment is due and you can’t afford it, your anxiety levels shoot up.
Even if you can make your monthly mortgage payments, catching up on previously missed payments is a huge challenge.
The good news is that there are several options that you help you avoid foreclosure in Kenosha-Racine, WI. You may even be able to find ways to keep your house, even if you have missed a few payments. Unfortunately, statistics show that in Kenosha-Racine, many homeowners have lost their property due to defaulting on their mortgage. However, you don’t have to be one of those stats. We’re here to help you. You can reach out to us by calling 262-228-8505 or filling out this easy form on our website.foreclosure
5 Ways to Avoid Foreclosure if Your Behind on Mortgage Payments
Of course, being a missing a few months or mortgage payments is never ideal. And, unfortunately, there are few pain-free solutions. But let’s look at the best ways to help resolve your situation.
1. Bankruptcy
If you declare bankruptcy before a lender starts foreclosure proceedings, you may be able to stay in your house despite the foreclosure. Bankruptcy is a last resort if you’re crushed by lots of debt. However, you get the chance to deal with most of your lenders at once. Filing for bankruptcy means that your lender can’t continue trying to collect debts.
2. Reaffirming your mortgage
Reaffirming your mortgage can be a great card to play; however, it comes with unseen penalties. In short, mortgage reaffirmation is an additional commitment to pay the loan. This step can help get lenders off your back.
3. Making home affordable (MHA)
You may be able to participate in the Making Home Affordable scheme if your mortgage qualifies. If your loan is backed by Freddie Mac or Fannie May, the loan has to be considered for MHA. Under this government-backed plan, you may qualify for lower interest rates or even reduced mortgage payments. If you’re unemployed, you may also be able to temporarily suspend mortgage payments until you find employment.
This, of course, isn’t free money, and there’s a lot of paperwork involved. But it could be a great solution to your mortgage predicament.
4. Negotiate with your bank
Banks and lenders are usually interested in helping folks pay for their mortgage. After all, banks are in the finance business, not real estate business. However, you could be able to negotiate a reduced interest rate or lower mortgage payments.
If you act quickly—before you’ve got a mountain of debt—your lender could offer you the option to refinance your loan. If you’ve already missed a few mortgage payments, you may not qualify for reductions.
When you need a temporary fix, and you can prove to the bank that the situation will improve, you probably find that lenders can be forgiving. Sometimes they are willing to extend the loan so that you can stay in your home. In the end, foreclosing on a home is an expensive process for banks. So, if you can show that you can pay the mortgage in the long run, it’s a win-win situation for both you and the bank.
5. Borrow from a private investor
If you’re behind on your mortgage payments, one way to get out of the situation is to sell your home for cash. Selling your Kenosha-Racine home for a cash deal and help you avoid foreclosure. Many trusted investors, such as At Home Buyer, can also offer solutions that allow you to stay in your home after selling it.
We work with homeowners in Kenosha-Racine to find solutions to foreclosure problems. So, if you’ve got mountains of debt and are falling behind on mortgage payments, please reach out to use. We are here to help folk in Wisconsin resolve mortgage issues.