When you find yourself falling behind on mortgage payments for your Raleigh home, the weight of financial stress can feel overwhelming.
Even if you’re managing your current monthly payments, catching up on accumulated past due balances can seem like an insurmountable challenge.
Fortunately, several options exist to help you avoid foreclosure in Raleigh and potentially keep your home, even when significantly behind on payments. While many Raleigh homeowners have faced foreclosure, our team at Phoenix Horizon Homes knows there are multiple pathways to prevent it.
Help, I’m Behind in My Mortgage Payments in Raleigh! 5 Things You Can Do To Help Your Situation
1. Bankruptcy:
This approach is typically considered a last resort. When overwhelmed by multiple debts, bankruptcy can provide leverage when negotiating with numerous lenders simultaneously. However, it’s complex and won’t eliminate your mortgage obligation. Different lenders respond differently to bankruptcy situations, so professional guidance is essential—invest in the best advice you can afford.
2. Reaffirm:
This strategy can be beneficial but may carry hidden consequences. Essentially, reaffirming your loan represents an additional commitment to fulfill your payment obligations. In states where permitted, reaffirmation might create extra liabilities if your property eventually goes to auction.
3. Making Home Affordable (MFA):
If your mortgage qualifies, the MHA program could offer valuable assistance. Any loans backed by Fannie Mae or Freddie Mac must be evaluated for MHA eligibility, while other lenders may voluntarily participate in the program.
Through MFA, you might secure reduced payments, lower interest rates, or even principal balance adjustments (if your home’s value is less than your outstanding debt). For those facing unemployment, the program may offer temporary payment suspension or reduction options.
As a government initiative, MFA involves substantial documentation and paperwork. Remember that this isn’t free assistance—it requires dedication and persistence to navigate the process successfully.
4. Negotiate with your bank:
Many lenders regularly offer assistance options to struggling homeowners. While it requires persistence, you might secure an interest rate reduction or temporary payment relief through direct negotiation.
Typically, lenders prefer directing you toward refinancing solutions—but once you’ve missed several payments, qualifying for better interest rates becomes challenging.
Bank negotiations demand exceptional perseverance. Expect numerous calls and significant patience to navigate institutional bureaucracy. Maintain a respectful approach throughout all communications. Request assistance from each representative you encounter without conveying desperation. Clearly explain your situation, provide supporting documentation, and emphasize your commitment to long-term homeownership.
For temporary solutions that allow you to remain in your home, many banks demonstrate flexibility. They may agree to add missed payments to your loan’s principal balance. From their financial perspective, helping you stay current ultimately benefits their bottom line. Remind them that foreclosure auctions typically result in substantial losses for the lender.
This financial reality might seem obvious, but banking representatives sometimes overlook this fundamental consideration when denying assistance to homeowners in need.
5. Borrow money from a private investor:
If you’re behind on payments and need a rapid solution, Phoenix Horizon Homes can help with speed, empathy, and excellence.
In select situations, we may even offer options that allow you to remain in your home—treating your situation with the respect and dignity it deserves.
We partner with Raleigh homeowners to develop innovative solutions to foreclosure challenges, guided by our RISE values of Resilience, Integrity, Service, and Excellence.
Contact us today to discover how our virtual real estate solutions can transform your challenging situation into an opportunity.