When you fall behind on your mortgage payments on your New Orleans 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 to avoid foreclosure in New Orleans and maybe even keep your house, even if you’re seriously behind in payments. Lots of properties in New Orleans have been lost to foreclosure, but there are many ways to avoid it.
Help, I’m Behind in My Mortgage Payments in New Orleans! 5 Things You Can Do To Help Your Situation
1. Bankruptcy:
Bankruptcy is typically seen as a last-ditch effort when dealing with overwhelming debt. It can be an effective method to negotiate with multiple lenders simultaneously. However, it’s essential to note that bankruptcy does not provide relief from mortgage payments. Moreover, each lender may handle the situation differently, making the process time-consuming and complex. Seeking expert guidance from a qualified professional is highly recommended, particularly one with extensive experience and expertise in bankruptcy law, to ensure the best possible outcome. While bankruptcy is not a decision to be taken lightly, it can be a viable solution for those struggling with significant financial challenges.
2. Reaffirm:
While reaffirming a loan can be a useful strategy, it’s crucial to understand the potential drawbacks. Essentially, reaffirming a loan is a pledge to repay the debt. However, in some states where it’s permitted, reaffirmation may result in additional liabilities if your property is sold at auction. As a result, it’s essential to weigh the potential risks and benefits of reaffirmation carefully before proceeding. Seeking advice from a qualified professional can help you make an informed decision and avoid any unforeseen penalties.
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. Borrow money from a private investor:
In the event that you are struggling to make payments and require a quick sale, we are available to assist you.
Under specific conditions, we may have the capacity to support you in remaining in your residence.
We work with homeowners in New Orleans to find solutions to foreclosure problems.
We’ll let you know how we can help.