If you struggling and thinking “I am starting to fall behind on my mortgage in New Jersey” it probably feels as if you are drowning in mountains of debt.
Even when you are able to make the monthly payments, getting passed payments all caught up is the most overwhelming part of all.
I’m behind on my mortgage in New Jersey
Luckily, you do have some options which can assist you in avoiding foreclosure in New Jersey and may even help find a way for you to keep the house, regardless of how late behind you are. Tons of properties within New Jersey have already gone through foreclosure, but that does not have to mean you, too. There are many different ways that you can avoid foreclosure is you are saying, “I’m falling behind on my mortgage in New Jersey.” Lets take a look at some of the options you have.
1. File Bankruptcy:
This tool should only be used as a final resort. When you are being suffocated by mountains in debt, filing bankruptcy can often be a good way for a fresh start and will give you the ability to negotiate down some of the debts with the lenders you owe. It will take some work on your part, and ultimately you will still be responsible for keeping up with the mortgage but it is a good way to buy yourself some time. For more information, its good to know exactly the stance that your lenders take in handling bankruptcy’s because each lender will handle them differently, so it is best to consult with a bankruptcy attorney first.
2. Reaffirming:
This is basically an agreement that states your promise to repay all or a portion of a debt from which you might have otherwise been released in a bankruptcy case. It can be a wise card to play, but it may also bring along other unseen penalties so it is best to consult with an attorney to see if its allowed in your jurisdiction.
3. MFA (Making Home Affordable):
This is a government program that, if you qualify (based upon your loan amount and your lender) then you could have the government pay off a portion of your loan. All loans that are backed by Freddie Mac or Fannie Mae must automatically get considered for the MHA program, while other lenders get to choose if they want to work with MFA.
There are a few different programs available through MFA, depending on which one you qualify for, your interest rate and/or payments could be lowered or the balance that you are behind could also be forgiven. There is yet another program for those that are unemployed, where your payments could be temporarily suspended until you find a job again.
Since MFA is a government run program, you should be ready to fill out a ton of paperwork. This program will require a lot of work on your part but if you qualify, its definitely a great program to help you get caught up.
4. Work with your lender:
Most banks are ready to negotiate to offer you some sort of assistance to help you get caught up. The bank is losing money if they end up foreclosing on you, so they are usually very eager to find a way to keep you in the loan – since that is how they make the most money off of you. Ask about either getting a reduction in your interest or even a temporary reduction for your monthly payment.
Usually, lenders will try and steer you into refinancing the loan – but when you are behind on payments, most likely you will not qualify for a refinance.
Working with your bank is another option that will take a lot of work on your part, it usually means a ton of calls and the patience of a saint. But it is important to remember to never talk to the bank rudely. Ask everyone you talk to for help, but try not to sound desperate. Just explain the situation, offer whatever documents they need, and reassure them that you want to payoff the loan until the end, you just need some assistance at this time.
When they hear that, most banks can be somewhat forgiving. Sometimes they might tack your late payments on to the end of your loan if they see that you are serious about paying them. At the end of the day, it’s just dollars and cents to them, so remind them you intend to pay them much more money in the long run. If they end up selling your property in foreclosure, they’ll definitely be taking a loss.
5. Borrowing from an investor:
If you are behind on your mortgage payments and need to sell quickly, we are able to help with that.
In some cases, we might even have a way for you to stay in your house.
We work with lots of homeowners in New Jersey to find positive solutions to avoid foreclosure.
We’ll look at your situation closely and tell you how we might be able to help. We hope this article helped you out if you are saying, “Help! I’m starting to fall behind on my mortgage in New Jersey” and offered you some valuable insights on what you can do to get out of trouble!
