Getting behind on mortgage payments can feel like drowning in stress and worry. There is a reason they call it being “underwater.”
Even if you restore your ability to pay each month, catching up on past due payments can be an absolute nightmare.
Thankfully, there are options to help you avoid foreclosure here in Bakersfield, CA. They may even be able to help you stay in your house, even if you are behind by a large amount! Tons of properties have been lost to foreclosure here in Bakersfield, but hopefully yours won’t be one of them!
5 Things to Do to Try and Avoid Foreclosure in Bakersfield, CA
1. Reaffirm:
This can be a good option, as long as you are aware of the potential liabilities and consequences of continuing to not make payments. Essentially, this is just an additional commitment to pay your mortgage. However, with a reaffirmation, you could be liable to pay the lender out of your own pocket if they cannot sell your house and make their original loan amount back. This decision requires serious consideration, as it is not simply a get out of jail free card.
2. Making Home Affordable (MHA):
If your loan qualifies, you might consider looking into MHA.
Any Fannie Mae or Freddie Mac loans must be considered for MHA, but you can contact whichever lender you have to see if this might be an option for you!
This program might be able to lower your payments or interest rates, and potentially even your principal balance if your house is worth less than you owe. If you are unemployed, you might even be able to have your payments suspended.
MHA is a government program, so there will be a lot of hoops to jump through, but if saving your home is important to you, it might just be worth it.
3. Negotiate with Your Bank:
Many lenders will do what they can to help you at some level. It will probably require quite a bit of effort, but they might reduce your interest rate or even let you make smaller payments for the time being.
A majority of the time, lenders will want you to refinance the loan; however, if you are already late on your mortgage, you might not qualify anymore to lower your interest rate.
This option requires a lot of patience and determination. There are a lot of people you will have to talk to, and like the other programs, usually there are many hoops to jump through. If you are serious about trying to save your home, it will take hard work and effort, and humility to ask for a lot of help.
Banks can help you through the situation, but they do not owe you anything. In fact, it is exactly the opposite. If you are in this situation, you owe the bank money that you haven’t been able to pay, and you need their help and their grace to work with you to make things right. Remember that when you are tempted to get annoyed with the bank employees and at the long frustrating process.
Most banks will want to work with you to help you make payments again. It is actually in their best interest to help you. If they have to foreclose on the property and sell it at an auction, they take a huge loss. On the other hand, if they can help you get back on track, they will continue to make money on your loan. Sometimes it will even work out better for them because they can add the missed payments to the end of the loan and make even more money over time than they would have initially. This can be a win-win for both parties involved.
4. Bankruptcy:
This is typically a last resort option, but it can help. If you are absolutely in over your head and have too many debts to pay attention to, this will help you deal with everything all at once. Again, this is not a decision without consequences, but it could be a legitimate option to help you get through the next few months at least. It is always best to look into good professional help when considering this option.
5. Get Help From an Investor:
If you are just looking to sell your house fast, we can help! Maybe you’re staring down an inevitable foreclosure and it doesn’t look like any other option is viable, but you don’t want to walk away with nothing.
We might be able to help you actually sell your home quickly in Bakersfield and keep a foreclosure off your record!