When you start to fall behind on your mortgage payments for your Minneapolis MN home, it can rapidly begin to feel like you’re drowning in debt.
Even if you find a way to make your monthly payments, catching up on a past due balance can be an overwhelming challenge.
Many properties in Minneapolis have been lost to foreclosure, but there are a few ways to avoid this outcome. Below, we’ve attached some options that can help you avoid foreclosure in Minneapolis . These solutions may even be able to help you keep your house, however, with all of them, time is of the essence.
Help, I’m Behind in My Mortgage Payments in Minneapolis! 5 Things You Can Do To Help Your Situation
This is usually used as your tool of last resort. If you’re being crushed under the weight of your debt, bankruptcy can be a good way to negotiate with lots of lenders, all at the same time. This process if often a lot of work, and it won’t help you avoid your mortgage. However, different lenders will treat your circumstances in unique ways. Declaring Bankruptcy would help you benefit from serious professional help – the best that you can afford!
This can be a good card to play; but it may come with some unseen penalties.
Basically, reaffirming the loan is the process of making an additional commitment to pay. Initially, this might remove some of the pressure that will come with having to catch up on your mortgage payments.
However, in some states where it’s allowed, an affirmation can create additional liabilities if your property is auctioned.
3. Making Home Affordable (MFA):
If your mortgage qualifies, you might be able to participate in MFA. Any loans backed by Fannie Mae or Freddie Mac, as well as any other lender who chooses to participate, will be considered for MFA.
With MFA, there is a firmer possibility for your payments and/or interest rates to be lowered. This might even include your principal balance (if your home is worth less than you owe). If you’re unemployed, you may be able to get your payments temporarily suspended or reduced.
MFA is a government program, so be prepared to deal with lots of paperwork. In addition, it’s not free money – so be prepared to work for it.
4. Negotiate with your bank:
Many lenders routinely offer some level of assistance. You will have to work hard for it, and prove your commitment to paying off your debt. But if you do so, you might just be able to get your interest rate lowered…. or a temporary reduction in your incremental payments.
Most of the time, lenders will want to steer you into refinancing your loan – but by the time you’re a few payments behind, you probably won’t qualify for a reduction in interest rate.
This is where you’ll have to work really hard to negotiate with your bank. Usually, it takes lots of calls and the patience of a saint to successfully get through all the required bureaucracy. But through it all, you should always remember…Never… Ever Act Rude to you bank or lender. No Matter how frustrating they may be… Never!
Ask for help from everyone you speak to, but ensure that you don’t sound desperate ( Even if you are). Explain your situation, offer supporting documents, and reassure the bank that you are committed to completing all your outstanding mortgage payments as soon as you can.
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, in order to give them a lot more money in the long run. If they have to sell your house at a foreclosure auction, they’ll make a huge loss.
That sounds obvious, but for some reason, bankers seem to forget it when saying “No” to people that ask for help.
5. Borrow money from a private investor:
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 Minneapolis to find suitable solutions for their foreclosure problems.
We’ll let you know how we can help.