Behind on Mortgage Payments?
If you’re struggling to keep up with your mortgage payments on your mobile home in Poconos, PA, it can be overwhelming. Even if you’re able to make your monthly payment, catching up on a past due balance can be challenging. However, there are options available to help you avoid foreclosure in Poconos, PA and potentially keep your home, even if you’re significantly behind on payments. While many properties in Poconos, PA have been lost to foreclosure, there are several ways to prevent it.
Steps to Take When Behind on Mortgage Payments in Poconos, PA
If you are behind on mortgage payments, here is a to-do list that can help you take action:
- Contact your lender: The first step is to contact your lender and explain your situation. They may be able to offer some temporary relief or work out a payment plan with you.
- Review your budget: Take a close look at your monthly expenses and see where you can cut back. You may need to make some tough decisions, such as canceling cable or eating out less often, but it can help you free up some extra money to put toward your mortgage.
- Consider refinancing: If you have equity in your home, you may be able to refinance your mortgage to lower your monthly payments.
- Explore government programs: There are several government programs that can help you if you are behind on your mortgage payments. For example, the Making Home Affordable (MHA) program and the Home Affordable Refinance Program (HARP) can help you lower your interest rate, reduce your payments, or refinance your mortgage.
- Seek professional advice: It can be helpful to seek advice from a professional, such as a housing counselor or an attorney, who can help you understand your options and negotiate with your lender on your behalf.
- Consider selling your home: If you are unable to catch up on your mortgage payments, selling your home may be the best option to avoid foreclosure.
Other Things You Can Do To Help Your Situation
Bankruptcy:
Bankruptcy is often considered a last resort option. If you’re overwhelmed by a significant amount of debt, it can be a way to negotiate with multiple lenders at once. However, it’s important to note that bankruptcy won’t help you avoid your mortgage. Each lender may have a different approach to your situation, so seeking professional help is crucial. It can be a lot of work, but it’s worth investing in the best professional help you can afford.
Reaffirm:
Reaffirming the loan can be a viable option, but it’s important to be aware of any potential hidden drawbacks. Essentially, reaffirming the loan is an agreement to py additional commitments. In certain states where this is permitted, reaffirmation can lead to additional liabilities if your property is sold at an auction.
Making Mobile Home Affordable (MFA):
If your mortgage is eligible, you may be eligible for the MHA program. All loans supported by Fannie Mae or Freddie Mac must be considered for MHA, and other lenders may choose to participate in MFA.
With MFA, you may be able to lower your payments and/or interest rates, or even the principal balance if your mobile home is worth less than what you owe. If you’re unemployed, you might be able to temporarily suspend or reduce your payments.
MFA is a government program, so expect to deal with a lot of paperwork. It’s not free money, you’ll have to put in some effort to apply for it.
Negotiate with your bank:
Many lenders offer some form of assistance to those struggling with mortgage payments. While it may require effort, you may be able to negotiate a reduction in your interest rate or a temporary reduction in your payment. Typically, lenders will suggest refinancing your loan, but if you are already behind on payments, you may not qualify. Negotiating with a bank can be challenging, requiring numerous calls and patience. It’s important to be polite and respectful when seeking assistance, and to provide supporting documentation to explain your situation. Additionally, it may be helpful to assure the bank that you want to keep your mobile home long-term. In some cases, the bank may agree to add a few months of payments back onto the primary balance of your loan to help you catch up. Remind them that helping you stay in your home is beneficial to them in the long run, as a foreclosure auction would result in a significant loss for the bank.
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 mobile home.
We work with mobile homeowners in Poconos, PA to find solutions to foreclosure problems.
We’ll let you know how we can help.