If all you can think is, “I’m behind in my mortgage payments,” the stress can be overwhelming—making you feel stuck in a never-ending cycle of financial pressure and uncertainty.
Even if you manage to make your current monthly payment, trying to catch up on accumulated past due balances can seem like an impossible mountain to climb.
Fortunately, several options exist to help you avoid foreclosure in Lubbock and potentially keep your home, even when significantly behind on payments. While many properties in Lubbock have been lost to foreclosure, at Electrum Properties, we believe in finding win-win solutions that help homeowners regain their freedom.
Help, I’m Behind in My Mortgage Payments in Lubbock! 5 Things You Can Do To Help Your Situation
1. Bankruptcy:
This is typically considered the last-resort option. When overwhelmed by multiple debts, bankruptcy can provide a structured way to negotiate with numerous lenders simultaneously. However, it involves significant paperwork and won’t eliminate your mortgage obligation. Different lenders respond differently to bankruptcy filings, so seeking professional guidance is essential—invest in the best advice you can afford.
2. Reaffirm:
Reaffirmation can be a strategic move, but it may come with hidden consequences. Essentially, reaffirming your loan represents an additional commitment to pay. In certain states where it’s permitted, reaffirmation can create extra liabilities if your property eventually goes to auction.
3. Making Home Affordable (MFA):
If your mortgage qualifies, the MHA program might provide relief. Any loans backed by Fannie Mae or Freddie Mac must be evaluated for MHA eligibility, while other lenders voluntarily participate in the program.
Through MFA, you might secure reduced payments, lower interest rates, or even principal balance reductions (if your home’s value is less than what you owe). For unemployed homeowners, the program may offer temporary payment suspension or reduction.
As a government program, MFA involves substantial documentation and paperwork. Remember, it’s not free assistance—you’ll need to invest time and effort to navigate the process.
4. Negotiate with your bank:
Many lenders offer assistance programs to struggling homeowners. While it requires persistence, you might secure an interest rate reduction or temporary payment relief through direct negotiation.
Banks often prefer steering customers toward refinancing options, but once you’ve missed several payments, qualifying for better interest rates becomes challenging.
Bank negotiations demand patience and persistence. Navigating through the bureaucracy typically requires numerous calls and remarkable patience. Maintain a courteous demeanor throughout. Ask for assistance from each representative you speak with, while avoiding sounding desperate. Clearly explain your situation, provide supporting documentation, and emphasize your desire to remain in your home long-term.
For temporary hardships when you intend to stay in your home, many banks can offer flexibility. They might agree to add missed payments to your loan balance. From their perspective, it’s a financial calculation—remind them that helping you now ensures they receive more money over time. A foreclosure auction would result in substantial losses for them.
This logic seems straightforward, yet surprisingly, lenders sometimes overlook this financial reality when denying assistance to homeowners in need.
5. Borrow money from a private investor:
At Electrum Properties, we specialize in helping homeowners who are behind on payments and need fast solutions to avoid foreclosure.
In some situations, we can even develop creative solutions that allow you to remain in your home while solving your real estate problems.
We work with distressed homeowners throughout Lubbock to create personalized solutions to foreclosure challenges, helping communities with win-win arrangements.
Contact us today to discover how we can help you get your financial freedom back.