When you fall behind on your mortgage payments on your St. Petersburg 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 St. Petersburg and maybe even keep your house, even if you’re seriously behind in payments. Lots of properties in St. Petersburg have been lost to foreclosure, but there are many ways to avoid it.
Help, I’m Behind in My Mortgage Payments in St. Petersburg! 5 Things You Can Do To Help Your Situation
1. Bankruptcy:
When faced with overwhelming debt, bankruptcy often becomes the last viable option for individuals seeking relief. By filing for bankruptcy, debtors can initiate negotiations with multiple creditors simultaneously, potentially alleviating the burden of extensive financial obligations. However, it’s essential to recognize that bankruptcy proceedings are complex and demanding endeavors. It’s crucial to understand that declaring bankruptcy does not absolve individuals of their mortgage obligations. Each lender involved may respond differently to the bankruptcy filing, necessitating tailored strategies for each situation. Seeking the guidance of experienced professionals is highly advisable, as navigating the intricacies of bankruptcy law requires expertise and insight that only seasoned professionals can provide. Thus, investing in reputable and competent financial guidance is paramount for achieving the best possible outcome amidst financial turmoil.
2. Reaffirm:
Reaffirming your mortgage can indeed be a strategic move, but it’s essential to recognize the potential pitfalls that come with it. While it’s a clear commitment to continue making payments on your loan, there are often hidden penalties lurking beneath the surface. For instance, in states where reaffirmation is permitted, signing this agreement could potentially expose you to further liabilities in the event of foreclosure and property auction. It’s crucial to thoroughly understand the implications and consult legal advice before opting for reaffirmation.
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:
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 St. Petersburg to find solutions to foreclosure problems.
We’ll let you know how we can help.
Give us a call now at 727-351-2202 or
fill out the form on this website to get started.
Quick Tip:
The “right of redemption” is when someone who borrowed money for a property (like a house) can stop the lender from taking the property away in a foreclosure. Here’s how it works:
- If the foreclosure process has already started, the borrower can stop it by paying the money that the court says they owe.
- If the court hasn’t made a decision yet, the borrower can still stop the foreclosure by paying back everything they owe under the loan agreement, including any extra charges because they couldn’t pay on time, and also the costs the lender had to spend to start the foreclosure, like lawyer fees.
- This can happen before the court officially says the property can be sold, or before the time the court decides in its decision.
- But if none of these things happen, then the borrower doesn’t have the right to stop the foreclosure. (According to Section 45.0315 of the Florida Statutes)