When you fall behind on your mortgage payments on your Arizona home, it can feel like you’re drowning in debt. Even if you’re able to make your monthly mortgage payment, catching up on a past due balance you’re behind on can be an overwhelming challenge.
There are a few options that can help you to avoid foreclosure in Casa Grande, Arizona City, Maricopa, Eloy, Coolidge and other cities in Arizona and maybe even keep your house, even if you’re seriously behind in payments.
Lots of properties have been lost to foreclosure, but there are many ways to avoid it. We also have FREE Foreclosure Resources to help you out. But you have to keep in mind that being behind on your mortgage payments does not mean that your local Arizona lender will immediately foreclose on you, there are still things that you can do to fix it and help your situation.
Rusty and Susanna of Pinal County Home Buyer have been investing in real estate for more than a decade and they love helping homeowners like you who may be in a tough situation.
Here Are 5 Things You Can Do To Help Your Situation:
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 clear out the mortgage payment balance you’re behind on, but it will allow you to get serious professional help – the best you can afford. Keep in mind though that different lenders will treat your circumstances in different ways so you have to be prepared no matter what.
2. Reaffirm
This can be a good card to play, but it may come with some unseen penalties. Basically, reaffirming the loan means providing additional commitment to pay what you’re behind on. The only risk with this option is an affirmation can create additional liabilities if your property is auctioned by your county sheriff in Arizona. If you’ve done that and you are still behind on your mortgage payments, remember you have other options.
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 so you won’t be more behind on the payments.
MFA is a government program, so be prepared to deal with lots of paperwork. It’s not free money – you have to work for it. You can find resources on MHA and FMA in Arizona from the Arizona Department of Housing.
4. Negotiate with your bank
Lenders routinely offer some level of assistance. You have to do the legwork, 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 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 a lot of calls and the patience of a saint to get through the bureaucracy. Never, ever act rude since you are asking for help from everyone you speak with. Try not to sound too sound desperate. Explain your situation, like why you are behind on your mortgage payment, offer any available 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, and they can earn more money in the long run. If they have to sell your house at a foreclosure auction, they’ll take a huge loss.
5. 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 Arizona home. We help homeowners in Casa Grande, Arizona City, Maricopa, Eloy, Coolidge and other cities in Arizona, whether they are behind or current on their mortgage payments with their local Arizona lender.
We also work with homeowners in Arizona to find solutions to foreclosure problems.
We’ll let you know how we can help. Give us a call now at (520)261-6116 or fill out the form on this website to get started.