There aren’t many things that can feel worse than being behind on your mortgage payments. It can be a helpless, hopeless, scary feeling, leaving you wondering how this happened? Maybe you got behind while in between jobs, and now you can make the monthly payment, but getting the arrears caught up just isn’t possible.
Now, you have foreclosure looming in the not-so-distant-future, but Property Scouts has some options that could keep you from going through that process with your Denver house. In fact, we may be able to help you keep the house too, regardless how far behind you are on mortgage payments.
First, you need to realize that many homeowners in the Denver, CO have lost their homes to foreclosure. So, you’re not the first one, and you won’t be the last one either. Here we want to share with you 5 things that can help you with your current situation:
1. File Bankruptcy:
This is a last resort, but when you are under water with debt, bankruptcy is a good tool to negotiate those debts with your lenders at one time. You should realize that it is a long process with a lot of work involved. It won’t help you avoid your Denver mortgage. It will stay on your credit report for 7 years, and not all lenders will respond to bankruptcy in the same way. Consulting with a bankruptcy attorney is the first step you need to make if this is something you’re considering.
There can be some unexpected and unseen penalties with this move, but by reaffirming your mortgage, you’re taking on an additional commitment to repay. There could be some additional liabilities if your Denver, CO property is auctioned.
3. Refinance Your Mortgage:
There are government programs that can help you get back on track with your Denver mortgage … if your loan qualifies. These programs will lower your payments, the interest rate, and possibly the principal balance if you get your home reappraised to show it is worth less than your balanced owed. If you fell behind on your mortgage due to unemployment, you can file a request to either reduce your payments or have them suspended for a temporary period. There will be a lot of paperwork involved in any of these scenarios.
4. Negotiate with Mortgage Holder:
There are many lenders that will offer some assistance with past due mortgage payments. Again, this too will take a lot of work, but the end prize could be lower interest rate or reduced payment.
The lower interest rate will be based on how many payments you’re behind. If you’re too far behind, you probably won’t qualify for a lower interest rate. Negotiating with mortgage lenders can be a lot of phone calls, a lot of work, and a lot of patience.
Keep your patience as you’re working with your Denver lender, remember rudeness will get you nowhere. As you explain your situation, don’t sound desperate, and be ready to supply any supporting documentation that will reassure your lender your desire to stay in the house.
If you need a temporary fix and don’t want to move, most lenders are forgiving and helpful. They may take the payments you’re past due, and one or two additional payments and add to the end of your loan.
5. Seek help from a private investor:
Property Scouts can help you if you’re behind on your mortgage payments. If selling fast is your plan, we can help. We offer a quick closing with cash paid at closing. Or if you want to keep your home, we’ll work with your bank or buy the house outright.