When you say to yourself “I can’t pay my mortgage payment this month for my home,” it can feel like you’re drowning in debt in Columbus.
Even if you can’t pay your mortgage this month for your home, catching up on a past due balance can be an overwhelming challenge. Plus the bank will charge late fees, making it even harder.
There are a few options that can help you to avoid foreclosure in Columbus even if you’re seriously behind in payments. Lots of properties in Columbus have been lost to foreclosure, but there are many ways to avoid it when you think “I can’t pay my mortgage this month.”
This is usually the tool of last resort. 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.
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.
3. Sell to a private investor:
If you find you can no longer afford your house, this may be your best option. When you find that you are struggling to make your payments each month, your mortgage becomes a burden.
If you think it is time to sell to save your credit, you may also notice that you have repairs or updates that are needed. These are added expenses you cannot afford. How will you get your house in shape to sell?
Selling to an investor can be a quick and painless solution. Investors can buy your home as-is, for cash. Some ask for a discount for a cash purchase. Others can use the mortgage to buy the house, make up the back payments and improve your credit in the process. This is the best option to get from underneath your bad loan and save your credit.
4. Negotiate with your bank:
Lots of lenders routinely offer some level of assistance. 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.
You have to work really hard 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. 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.
That sounds obvious, but for some reason, bankers seem to forget it when saying no to someone in need of help.