When you fall “behind on my mortgage payments” on your home, it can feel like you’re drowning in debt with no way out.
Even if you’re able to make your next 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 Dallas and maybe even keep your house, even if you’re severely behind on payments. Lots of properties in Dallas have been lost to foreclosure, but there are many ways to avoid it.
Help, I’m Behind On My Mortgage Payments in Dallas!
Here Are 5 Things You Can Do!
1. Bankruptcy:
Depending on your situation, this is usually the last resort before letting the bank take it. If you’re being crushed by lots of debt, bankruptcy can be a fantastic way to negotiate with lots of lenders at once. First off, I want to say that it is a lot of work, can be very expensive, and won’t help you avoid paying your mortgage payments altogether.
There are several different chapters of Bankruptcy that I won’t get into, but depending on your situation or your goals, that will determine what route is best for you. Some will help you liquidate your assets and others will help you restructure your bad debt. It’s important to talk with a bankruptcy attorney to see if this would be a good fit for you. Just remember that if you’re trying to keep your home, restructuring your debt can make your monthly payments even more expensive. And if you fall behind on your payments during bankruptcy, the courts will kick you out and you will be right back where you started.
2. Loan Modification:
Believe it or not, banks really do want to help you. If you are behind on your payments, they have teams in place to work with you and to help get you back on your feet.
So what is a loan modification? A loan modification is when a lender agrees to change the terms of a homeowner’s mortgage to help them avoid default or foreclosure and keep their home during times of financial hardship. It may involve a reduction in the interest rate, an extension of the length of time for repayment, a different type of loan, or any combination of the three.
To get the process started, give your bank a call and ask what you need to do in order to qualify for a loan modification. They will send you paperwork that you will need to fill out and they will request certain paperwork from you as well. Once you submit your paperwork, it’s important to follow up with the bank continuously. Sometimes things can get lost in space and you have too much at stake to sit back and wait.
3. Partial HUD Claim:
A partial HUD claim is another great option that your bank has for you that most homeowners are not aware of. This claim takes all of your current back payments to be placed in a zero-interest subordinate (2nd) lien that is repaid when the mortgage terminates, or when the homeowner either refinances or sells the home.
This is a fantastic way to get back in good standing with your mortgage. Just keep in mind that you will still be required to make your monthly mortgage payments after this process is over. So if you’ve struggled to make your payments in the past, make sure that you will be able to make your payments moving forward. Otherwise, you’ll be right back in the same situation.
Something else I like to always mention is that this HUD lien is never negotiable. So if you don’t have much equity in your home as it is, this could potentially make you upside down on your value. Meaning if you tried to sell the home, you would have to pay money at closing to make up the difference.
4. Temporary Restraining Order (TRO):
A Temporary Restraining Order is considered an emergency short term (key word here!) measure to prevent the bank from reading the home at the foreclosure auction. It does require an attorney and it’s not cheap. The attorney will handle the paperwork and you will need to show up in front of a judge to plead your case.
If you are currently behind on payments with no foreclosure date scheduled yet, then this might not be the best fit for you. This is a preventative measure to potentially stop the bank from reading the home at auction to buy you a little more time.
You want to make sure you have a way to resolve your problem before taking this route. This won’t make anything go away, it just places a temporary band-aid on the issue.
5. Sell Your Home:
If you’ve gone through all of your options and none seem like a good fit for you, then it might be best for you to sell your home and get out from under it. This is where we can help!
We want you to know that there are options for you when you are falling behind on your mortgage, but not all of those options might work for everyone. If you feel like selling might be the better option, reach out to us. We can close in as little as 5 business days with cash. If you need more flexibility than that, just let us know! We are happy to be as accommodating as possible.
If you’re still saying “I’m behind on my mortgage payments“, read this other blog we wrote that breaks down a few more potential options for you.
We work with homeowners in Dallas to find solutions to foreclosure problems.
We’ll let you know how we can help.