When you fall behind on mortgage payments on your Kansas City home, it can feel very overwhelming and the first reaction might be to just “stick your head in the sand” to avoid thinking about it.
Most homeowners are paying the maximum they can afford on their mortgage, so falling behind, just one month can be next to impossible to catch up.
There are a few options that can help you to avoid foreclosure in Kansas City and maybe even keep your house, even if you’re seriously behind on mortgage payments. Lots of properties in Kansas City have been lost to foreclosure, but there are many ways to avoid it.
Help, I’m Behind On Mortgage Payments in Kansas City ! What You Can Do To Help Your Situation
1. Bankruptcy:
This is often the option that people consider first, but it is important that you get guidance from professionals before you make this decision. There are credit counseling agencies who can help and reputable bankruptcy attorneys will provide you with information to help inform you about what your options are and what to expect if you do opt into bankruptcy.
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.