When you fall behind on your mortgage payments on your Shreveport 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 Shreveport and maybe even keep your house, even if you’re seriously behind in payments. Lots of properties in Shreveport have been lost to foreclosure, but there are many ways to avoid it.
The most important step is to catch it early. If you’re just behind a little bit, there’s still lots you can do. The further you get in the process, the harder it is to stop. The best time to take action is right when you know you can’t make your next payment, or have only just missed one.
Help, I’m Behind in My Mortgage Payments in Shreveport! 5 Things You Can Do To Help Your Situation
1. Negotiate with your bank:
This is the first and most important step to explore. 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. It’s actually in the bank’s best interest to work with you. They don’t want you to be behind on your mortgage payments. The whole goal of a bank loan is to keep getting money consistently each month, and they’ll work with you in order to have that happen. As soon as you know you might get behind on a mortgage payment, or have just missed one, that’s the time to act and speak with the bank. They’re much more likely to help the earlier you bring it up with them.
Most of the time, lenders will want to steer you to refinance your loan. That’s a great option if they offer it. It could help lower your rates or even reduce your monthly payments so you don’t fall behind on your mortgage payments again in the future. It’s up to your individual bank and your loan if this will be an attractive option or not. Again, act early, because by the time you’re a few payments behind, you might not qualify for the best programs they have to help out.
You have to work really hard to negotiate with a bank. Plan on it being a less lucrative side gig until you get everything resolved. Usually, it takes lots of calls and the patience of a saint to get through the bureaucracy. It’s important to have a good attitude on the phone and always follow up on your communications. Never, ever act rude. Information is key. Better to over explain your situation than under-explain. The more information they have, the better they can help you. Keep any important documents they send you, or you’ve been sent in the past, so you can have them ready when needed.
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.
2. Bankruptcy:
Not to be taken lightly, this is the last thing you want to do if you’re behind on your mortgage payments. It’s a serious filing that has serious consequences. Bankruptcy can stay on your credit for a while and you take a hard credit hit. It can be hard if not impossible to qualify for a new loan on a new house. 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 – there are a lot of great attorneys here in the Shreveport/Bossier area that will be happy to help you navigate this.
3. Get ahead of it and sell on market
If you want to get ahead of the situation, as soon as you know you might be behind on your mortgage payments, it could be an option to sell.
There are some great realtors here in Shreveport/Bossier, and they can help you list and sell for top dollar. Sometimes it’s best to hit the reset button. They can help you find a more affordable house in the same neighborhood, or help you explore your options as far as renting goes. If you’re looking to get ahead financially, this could be help while you’re building back up the finances to buy a house again.
Be transparent and honest with your realtor, and they’ll help out wherever they can. The mortgage will still have to be paid while the house is listed, so that’s something to take into consideration. If you can float it for 3-6 months, you will get the most out of your house listing on the open market. Consult with your realtor and make sure you know how much you’ll net. Often times you have to factor in 7-10% of the home’s sales price in commissions and closing closts, as well as accounting for minor repairs and staging to get it ready to put on market.
4. Consider a cash offer
Maybe you’ve tried to re-negotiate with the bank when you were first behind on your mortgage payments. After consulting with a bankruptcy lawyer, it’s not a great option. Possibly you’ve also considered listing. The fastest, easiest way out could be a cash sale.
If you don’t have the time to float your mortgage 3-6 months while the house is on market, and if refinancing isn’t an option, it’s good to know what you could get for your house as a cash offer. There’s no time on market, very few if any walkthroughs, and it’s as fast as you need it. We can even help you find another house off-market to move into and help you save on those realtor commissions for that property, as well.
All and all, it’s a great option to start fresh. If you know you might be behind on your mortgage payments and are just looking to plan for the future, give us a call and we’ll give you an idea of what your house could sell for cash.
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 home.
We work with homeowners in Shreveport to find solutions to foreclosure problems.
We’ll let you know how we can help.