Falling behind on your mortgage payments on your Myrtle Beach home? We know how stressful this situation can be.
Even if you’re able to make your monthly payment, catching up on a past due balance can be an overwhelming challenge.
There are a few options that can help you to avoid foreclosure in Myrtle Beach and maybe even keep your house, even if you’re seriously behind in payments. Lots of properties in Myrtle Beach have been lost to foreclosure, but there are many ways to avoid it.
Help, I’m Behind in My Mortgage Payments in Myrtle Beach! Here are some options…
1. File For Bankruptcy:
This is usually a 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. Chapter 7 bankruptcy has the effect of discharging a debtor’s financial obligation to pay the mortgage. That means that if the debtor stops paying the mortgage, the most the mortgagee can do is foreclose on the home and take it back. So the mortgagee can never pursue the mortgagor for any money. If you are seriously considering this option, try to get a free consultation with a reputable local Myrtle Beach bankruptcy attorney.
If you are being asked to reaffirm your mortgage, this is typically not advisable. It may be beneficial in specific situations but also comes with strings attached. Basically, reaffirming the loan is an additional commitment to pay. Generally, there is no reason to reaffirm a mortgage obligation unless the mortgagee has agreed to modify one or more of the mortgage terms so that keeping the mortgage is much, much more beneficial. Speak to your attorney.
2. Making Home Affordable (MFA):
Making Home Affordable (MHA) is a program that was launched in 2009 as a way to aid eligible homeowners by lowering their monthly mortgage payments to a more manageable level.
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 even be able to get your payments temporarily suspended.
MFA is a government program, so lots of paperwork is involved. You may have to jump through some hoops, but it’s a good way to get some financial relief if you’re struggling to make your mortgage payments.
3. Negotiate With Your Bank:
This is a very worthwhile option with lots of possibilities and hardly any disadvantages. Many 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.
If you haven’t yet fallen behind on your mortgage payments, then refinancing your loan can be a great option for lowering your payments or pulling some cash out. But if you’re already a few payments behind, you probably won’t qualify for a refinance.
You have to work really hard to negotiate with a bank. Be courteous and genuine. Ask for help from everyone you speak with. 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 understanding. Sometimes they’ll be willing to add a few months of payments onto the back end of your loan. The last thing the bank wants to do is foreclose on your home. If they have to sell your house at a foreclosure auction, they’ll take a huge loss.
And remember, the person you are speaking to on the other end of the phone has probably helped countless other homeowners in similar situations. Don’t be embarrassed by your current position. Everyone finds themselves in a tight spot from time to time.
4. Borrow Money From a Private Investor:
Some investors out there will be willing to lend you money to pay your mortgage and stay in your home. They will most likely take a second lien position on your home, behind the bank. The interest rates will probably be high, and there will be fees involved.
You will likely be able to get a loan this way if you can show proof that you can pay your financial obligations. So if you’re unemployed or have high revolving debt, this may not be an option.
5. Sell Your Myrtle Beach Home Fast for Cash
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 Myrtle Beach to find solutions to foreclosure problems.
We’ll let you know how we can help.
Give us a call now at 843-732-3529 or
fill out the form on this website to get started.
Get treated like family with Belle Coast Properties. We simplify the house selling process… check out our testimonials here.