When you fall behind on your mortgage payments on your San Diego 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.
There are a few options that can help you avoid foreclosure in San Diego and maybe even keep your house, even if you’re seriously behind in payments. Lots of properties in San Diego have been lost to foreclosure, but there are many ways to avoid it.
Tips To Follow Before Mortgage Payments
1. Bankruptcy:
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.
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.
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.
MFA is a government program, so be prepared to deal with lots of paperwork. It ain’t free money – you gotta work for it.
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.
5. Mortgage Forbearance
Mortgage forbearance is an agreement with your lender that temporarily suspends or reduces your mortgage payments for a specific period of time. It’s designed for homeowners experiencing a temporary financial issue. It allows them some time to regain financial stability without the immediate foreclosure threat.
When the forbearance period ends, you will need to repay the delayed payments. However, lenders usually work with borrowers to create feasible and key steps to take for mortgage payments.
6. Financial aid
Distressed homeowners may be qualified for an assortment of mortgage relief programs with their lender. Every type is developed to address distinctive financial issues homeowners might face. Here’s a closer look at some of the choices:
- Interest-free loans
- Waiving fees
- Second mortgage/equity loans
7. 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 Diego to find solutions to foreclosure problems.
We’ll let you know how we can help.
Give us a call now at (951) 783-2611 or
fill out the form on this website to get started.
FAQs
1. What happens if I don’t have money to pay my mortgage?
If you don’t have money to pay your mortgage, you can:
- Contact your lender to discuss payment plans or forbearance.
- Risk foreclosure if payments aren’t made.
- Consider loan modification, selling, or refinancing.
- Seek help from a financial advisor or a housing counselor.
2. Can I put my mortgage on hold?
Yes, you may be able to temporarily pause or decrease your mortgage payments through forbearance, payment deferment, or loan modification.
3. What happens if I am unable to pay my home loan?
If you’re unable to pay your home loan:
- Late penalties and fees may be charged.
- Your credit score may be negatively impacted.
- The lender may begin foreclosure proceedings.
- You may be able to arrange a payment plan, loan modification, or forbearance with your lender.