When you fall behind on your mortgage payments on your San Bernardino home, it can feel like you’re drowning in debt.
Even if you’re able to make your monthly payment, catching up on a past due balance can be an overwhelming challenge. This situation can lead to high stress, feelings of hopelessness, and anger. We are very familiar with these challenges and have helped many families in this same situation find their solution.
There are a few options that can help you to avoid foreclosure in San Bernardino and maybe even keep your house, even if you’re seriously behind in payments. Lots of properties in San Bernardino have been lost to foreclosure, but there are many ways to avoid it.
Help, I’m Behind in My Mortgage Payments in San Bernardino!
5 Things You Can Do To Help Your Situation
1. Bankruptcy:
This is usually the tool of last resort. This may be your saving grace but only if you have exhausted all other possible options. If you’re being crushed by lots of debt, bankruptcy can be a good way to negotiate with lots of lenders at once. It’s a lot of work, and it won’t help you avoid your mortgage. Different lenders will treat your circumstances in unique ways. You’d benefit from serious professional help – the best you can afford.
2. Reaffirm:
This can be a good card to play, 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. These potential penalties are to be kept in mind, it is recommended to consult with a professional in your area like Saker Property Solutions.
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. This can relieve some pressure if you are in a difficult financial position, it depends if this is beneficial to your specific situation.
MFA is a government program, so be prepared to deal with lots of paperwork. They say theres no such thing as a free lunch and it may apply here.
4. Negotiate with your bank:
Lots of lenders routinely offer some level of assistance. The banks do not want you to foreclose as much as you do not want to foreclose, so there is some level of team effort is finding a solution. You have to work hard at it, but you might be able to get your interest rate reduced or a temporary reduction in your payment.
Most of the time, lenders will want to steer you to refinance your loan – but by the time you’re a few payments behind, you probably don’t qualify for a reduction in interest rate. Also refinancing restarts your loan and the interest you have already paid, it is often not beneficial unless you are shortening the term of the loan.
You have to put serious effort to negotiate with a bank. Usually, it takes lots of calls and the patience of a saint to get through the bureaucracy. Never, ever act rude even if you are irritated. Ask for help from everyone you speak with, but don’t sound desperate. Explain your situation, offer supporting documents, and reassure the bank that you want to live in your home for the long term.
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 which is something they are not in the business of doing.
That sounds obvious, but for some reason, bankers seem to forget it when saying no to someone in need of help. A gentle and consistent reminder can go a long way.
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 San Bernardino to find solutions to foreclosure problems.
We are a family business that have helped many other families in San Bernardino and surrounding areas, we have seen it all and you are not alone.
We’ll let you know how we can help.