We buy houses in Katy, Texas. If you fall behind on your mortgage payments on your Katy home, it can be overwhelming. Today we will discuss some options you have if you are saying: “I am behind in my mortgage payments in Katy TX”.
So, you have fallen behind. This happens all the time actually. Medical bills, job loss, or just a couple of months of high expenses. The challenge is catching up on a past due balance, in some cases it isn’t possible.
The good news is that there are some options that can help you to avoid foreclosure in Katy and possibly allow you to keep your home. Many houses in Katy have been lost to the bank in foreclosure, but there are many ways to avoid running into mortgage paying trouble.
5 Options In This Situation
1. Declare Bankruptcy In Your TX Property
This is somewhat of the nuclear option. If you have lots of debt, bankruptcy can be used as a way to negotiate with several lenders at once. It’s a significant amount of work, and you will still have to pay your mortgage. Lenders can treat the situation differently depending on the circumstances. We recommend seeking professional help if you can afford it.
2. Reaffirm The Loan In Katy
Reaffirming the loan is a new contract between you and your lender that makes you personally liable on the loan again. Basically, reaffirming the loan is an additional commitment to pay. This is sometimes a good option, but it may come with penalties.
3. Making Home Affordable (MFA) In Texas
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. Try to Negotiate With Your Bank In Katy
Many lenders will routinely offer some type 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 hard to negotiate with a bank. This will take a lot of calls and the patience. Ask for help people you speak to, but don’t sound desperate. Explain whats going on, 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.
If they have to sell the house at a foreclosure auction, they’ll take a huge loss. I know that sounds obvious, but for some reason, bankers seem to forget it when saying no to someone in need of help.
5. Borrow The Funds From A Private TX 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. As TX home buyers, we work with homeowners in Katy to find solutions to foreclosure problems.
We Buy Houses Fast in Katy TX
You do not need to worry a lot about being behind on your mortgage payments because there are things you can do to help with the situation. Bankruptcy can be one good reason so you could negotiate with lenders. The MFA government program could also be a good option. But if you need to sell your house in Texas fast, consider dealing with investors Brilliant Day Homes. We’ll let you know how we can help.