I’m Behind On My Mortgage Payments in Michigan – What Do I Do?

Behind on your mortgage? Read this article for a few tips on what you can to do prevent and avoid foreclosure

When you fall behind on your mortgage payments in Michigan, 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’s a few options that can help you to avoid foreclosure in Michigan and maybe even keep your house. Lots of properties in Michigan have been lost to foreclosure, but there are many ways to avoid it.

1. Bankruptcy:

This is usually the last resort. If you’re being crushed by debt, bankruptcy can be a good way to negotiate with multiple lenders at once. It’s a lot of work, and it can seriously affect your life in the future as it remains on your credit history for several years. Different lenders will treat your circumstances in unique ways. You’d benefit from professional help with this option. Consult an attorney.

2. Reaffirm:

This can be a good card to play, but it may come with some unseen penalties. Basically, reaffirming the loan is an additional commitment to pay. In some states where it’s allowed, an affirmation can create additional liabilities if your property is auctioned.

3. Making Home Affordable:

If your mortgage qualifies, you might be able to participate in this program. Any loans backed by Fannie Mae or Freddie Mac must be considered for home affordability.

With this program, 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.

The program is a government program, so be prepared to deal with a lot of paperwork. It ain’t free money – you gotta work for it.

4. Negotiate with your bank:

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.behind-on-my-mortgage-payments-in-michigan

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 a lot of calls and a lot of patience to get through the bureaucracy. Never 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 and successfully make your payments.

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 in 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 Michigan to find solutions to foreclosure problems.

Some cities we operate in include Sterling Heights, Warren, Rsoseville, Eastpointe, Macomb, Utica, Shelby, Harrison Township, Saint Clair Shores, Clinton Township and most of Macomb County, Michigan.

We want to help. Give us a call today at 586-307-4330 to see if your situation qualifies. You can also download our free STOP Foreclosure Guide below for some crucial tips and information about how to avoid foreclosure and keep your home.

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