Help! I’m behind in my mortgage payments in Chicago!
Behind on your mortgage payments and looking for a quick way out? Yeah! We get it! Falling behind on your mortgage can be draining and overly challenging. To get to the solution – and explain why you might be able to avoid foreclosure – Read this article discussing a few tips you can adopt to prevent or even avoid an impending foreclosure.
It’s no mystery why thousands of American have fallen behind on their mortgage payments. Lots of properties in Chicago have been lost to foreclosure, but loss mitigation amongst other procedures have been put in place to help avoid it. It’s time to get serious.
5 THINGS YOU CAN DO TO AVOID FORECLOSURE
MAKING HOME AFFORDABLE (MHA)
Making Home Affordable (MHA) was designed with an ultimate aim to help struggling homeowners prevent needless foreclosures. You might be able to participate in MHA if your mortgage qualifies. With MHA, your interest rates might be reduced and you might be able to get your debt suspended if you are unemployed. The program is worthwhile, but be ready to fill a whole lot of paperwork.
NEGOTIATION WITH BANK
No forward-thinking company wants to record a loss. Herein, lenders/banks render some level of assistance to mortgagees in terms of lowering their interest rates or reducing their payments temporarily. To negotiate with banks, you have to be immensely polite and careful with your approach. Be ready to make lots of call, tender supporting documents, talk to people, and not desperate while doing so.
For some reason, they’ll be willing to add few months of payment to the primary balance of your loan. They always want to make more money!
Simply put, reaffirmation agreement is an additional commitment to pay. The agreement is made between a creditor and a debtor in which the debtor forgoes the right to discharge of debt after an impending bankruptcy.
PROS: The debtor gets to keep his personal property for agreeing to pay all or apportion of debt to be discharged after declaring bankruptcy.
CONS: Since the lender’s lien still exists, the debtor risks foreclosure with or without the reaffirmation agreement.
BORROW MONEY FROM PRIVATE INVESTORS
In this case, you will tender documents evaluating your assets value (termed collateral), funds sought-after, the type of property and the use of funds to the investors. The private investor then assess your proposed loan to determine the amount that will be borrowed, which is determined by establishing a “protective equity” on your collateral.
FILING FOR BANKRUPTCY
This is mostly regarded as the last resort to most debtors. Filing for bankruptcy can take different forms depending on the state’s laws.
If you file for Chapter 7 bankruptcy, court will view your case, and discharge you of your outstanding debts, stopping lenders from taking any legal action.
However, in Chapter 13 bankruptcy, your liability to the mortgage stands, and you will be given the option to pay your overdue payments which is to be overseen by a payment plan.
Careful and adequate consultation is required if this step is to be taken, because the outcome may prevent getting financial aids of some sort.
Here at Houseo™, we offer great services that will prove affordable and sustaining to your mortgage/foreclosure problems on short and long run.
Give us a call now at 224-306-9359 or
fill out the form on this website to get started.