Falling behind on your mortgage payments for your home in Lehigh Valley can feel like you’re in over your head with debt. Even if you’re managing to cover your current monthly obligations, catching up on any overdue amounts can be an incredibly daunting task.
Fortunately, several options may help you avoid foreclosure in Lehigh Valley and potentially keep your home, even if you are significantly behind on payments. Many properties in Lehigh Valley have unfortunately been lost to foreclosure, but numerous alternatives exist to help you steer clear of this outcome.
If You’re Behind on Your Mortgage Payments in Lehigh Valley, Here Are 5 Strategies to Improve Your Situation:
1. Consider Bankruptcy:
Bankruptcy is generally seen as a last resort but can be an effective way to address overwhelming debt. This legal process allows you to negotiate with multiple lenders simultaneously. While it can be quite complex and won’t eliminate your mortgage obligations, it might provide the relief you need. It’s advisable to seek professional guidance to navigate this challenging route effectively.
2. Reaffirm Your Loan:
Reaffirming your mortgage can be a strategic move, but it may carry unexpected consequences. By reaffirming, you are essentially committing to repay the loan, which could add additional liabilities if your property ends up being auctioned in the future. It’s essential to weigh the benefits and drawbacks carefully before proceeding.
3. Explore Making Home Affordable (MFA):
If your mortgage qualifies, participating in the Making Home Affordable program could provide significant relief. Any loans backed by Fannie Mae or Freddie Mac are eligible, and other lenders may choose to partake as well. Through MFA, you may see reductions in your payments, interest rates, or even your principal balance if your home is worth less than what you owe. If you’re unemployed, this program could allow for temporary payment suspensions or reductions. However, as this is a government initiative, be prepared for extensive paperwork—this process requires effort on your part.
4. Negotiate with Your Lender:
Many lenders offer some form of assistance, but it may require considerable effort on your part. You could potentially negotiate a lower interest rate or a temporary payment reduction. Typically, lenders may push for refinancing, but if you’re already behind on payments, qualifying for that might be difficult.
Successful negotiation requires persistence and patience. Keep your tone respectful and courteous throughout the process. Clearly explain your situation and provide any necessary supporting documentation. Reassure your lender of your commitment to maintaining long-term residency in your home. Many banks may be willing to accommodate your needs by adding missed payments to your loan’s principal balance. They understand that foreclosing on your home would lead to a significant financial loss for them.
5. Seek Assistance from a Private Investor:
If you find yourself in a position where you’re behind on payments and need to sell quickly, we can help. In some cases, we may even assist you in staying in your home.
At iBuyLehigh, we collaborate with homeowners in Lehigh Valley to identify solutions to foreclosure challenges. We’re here to explore how we can assist you.