When financial circumstances take a downturn, falling behind on mortgage payments for your Kansas City home can be an overwhelming experience. The initial instinct may be to bury your head in the sand, avoiding the reality of the situation. However, it’s crucial to confront the issue head-on and explore viable solutions.
For most homeowners, their mortgage payments already push their financial limits to the maximum. Consequently, even falling behind by just one month can seem insurmountable. The fear of foreclosure looms large, as numerous properties in Kansas City have unfortunately been lost to this fate. Nevertheless, it’s essential to remember that there are various options available to help you navigate these challenges and potentially retain ownership of your beloved home.
If You Are Behind On Mortgage Payments in Kansas City , Here Are Some Options To Consider
1. Bankruptcy:
When faced with financial hardships and falling behind on mortgage payments, one common option that comes to mind is bankruptcy. However, it is crucial to seek guidance from professionals before making such a decision. In Kansas City , there are reliable credit counseling agencies that can offer valuable assistance, providing you with the necessary information to make an informed choice. Additionally, reputable bankruptcy attorneys can guide you through the process, enlightening you about the available options and preparing you for what to expect should you opt for bankruptcy. Relying on their expertise ensures you have the right knowledge to navigate this complex terrain.
2. Reaffirm:
This can be a good option, 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. You would be best suited to check in with your bankruptcy attorney about this option.
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:
Lenders routinely offer some level of assistance if you are behind on mortgage payments. Contact your lender and find out what options they have available. You might be able to get your interest rate reduced or a temporary reduction in your payment.
Lenders may steer you to refinance your loan – but by the time you’re a few payments behind, refinancing may not help you reduce your interest rates or payments, it may have the opposite affect.
You may have to talk to several people within the lender’s company in order to get to the right person who can help. Be patient and try to be professional with each person you speak to.
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.
5. Call a professional home buyer:
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 Kansas City to find solutions to foreclosure problems.
We’ll let you know how we can help.