When you start to face mortgage payment troubles for your Minneapolis MN home, it can rapidly begin to feel like you’re drowning in debt. This is mainly because catching up on a past due balance can be an overwhelming challenge. And it’s not made any easier by the constant threat of foreclosure that will be looming over your head from the moment you miss your very first mortgage payment.
Going through a foreclosure can be quite a scary prospect because of all the negative consequences of foreclosure you’ll face after the bank officially kicks you out. Your credit score will likely take a tremendous hit (dropping by anywhere from 100 – 300 points), which may make it very difficult for you to buy things like cars and clothes in the future. In addition to this, the emotional impact of having your family forcefully uprooted can be quite a bitter pill to swallow.
Below, we are going to talk about how you can go about avoiding foreclosure. So if you’re terrified that you’ve missed a few payments and are behind on your mortgage, fear not. We’ve got you covered!
How to Avoid Facing Issues With Your Mortgage Payments
Read on to explore our guide to avoiding mortgage payment troubles in Minneapolis MN
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 also even be able to help you keep your house. However, with all of them, time is of the essence.
Declare Bankruptcy to Avoid Foreclosure in Minneapolis MN
While filing for bankruptcy to avoid foreclosure can be an effective solution, 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 is often a lot of work, and it won’t help you avoid your mortgage. However, different lenders will treat your circumstances in unique ways. As such, bankruptcy could help you benefit from serious professional help – the best that you can afford!
Reaffirm your loan to Avoid Foreclosure in Minneapolis MN
If you have a good track record of prior payments, opting to reaffirm your loan with your lender can be a good card to play. But it also 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.
Making Home Affordable (MFA) Programs to Avoid Foreclosure in Minneapolis MN
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.
Bank Negotiation to Avoid Foreclosure in Minneapolis MN
Many lenders routinely offer some level of assistance. For this assistance, you will have to work hard in proving 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 your 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. This can be an effective tactic in negotiations because 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.
Sell Your House to FastPath Home Buyers to Avoid Foreclosure in Minneapolis MN
But if the options above don’t work for you, you should consider enlisting the aid of a cash home buying company like FastPath Home Buyers. At FastPath, we buy houses in Minneapolis MN for cash. We work fast and offer great prices. As such, if you contact us, we may be able to buy your house for a price above your mortgage balance, which will allow you to walk away from the property foreclosure-free.
Sure, it may not save your home. But it would be far better to avoid foreclosure by selling to us than to let the bank take your home and destroy your credit (as well as your financial future) in the process. So if you want to sell your house during foreclosure, contact our company either by calling (612) 351-2384 or by filling out the form at the bottom of the page. We’ll be in touch soon!
So there you have it. Now you know everything you can do to avoid foreclosure if you’re behind on mortgage payments in Minneapolis MN. For more information, visit our home page or fill out the short form below.
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