When you fall behind on your mortgage payments on your Augusta home, 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 are a few options that can help you to avoid foreclosure in Augusta and maybe even keep your house, even if you’re seriously behind in payments. Lots of properties in Augusta have been lost to foreclosure, but there are many ways to avoid it.
Help, I’m Behind in My Mortgage Payments in Augusta! 5 Things You Can Do To Help Your Situation
1. Bankruptcy:
This is usually the tool of last resort. If you’re being crushed by lots of debt, bankruptcy can be a good way to negotiate with lots of lenders at once. It’s a lot of work, and it won’t help you avoid your mortgage. Different lenders will treat your circumstances in unique ways. You’d benefit from serious professional help – the best you can afford.
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 (MFA):
If your mortgage qualifies, you may be able to participate in the Making Home Affordable (MHA) program. This program is designed to help homeowners who are struggling with their mortgage payments due to financial hardship. Any loans that are backed by Fannie Mae or Freddie Mac must be considered for MHA, as these government-sponsored entities are required to participate in the program. In addition, some other private lenders may choose to take part in the MHA program voluntarily, providing additional opportunities for borrowers who don’t have Fannie Mae or Freddie Mac-backed loans.
Under MHA, there are a number of ways your mortgage could be modified to make it more affordable. Mortgage Forgiveness Assistance (MFA) is one of the key options available through the program. With MFA, your mortgage payments and/or interest rates could be reduced to make your payments more manageable. In some cases, the program could even reduce your principal balance—particularly if your home’s market value has dropped significantly, leaving you owing more on the mortgage than the property is worth. This is often referred to as being “underwater” on your mortgage, and MFA can provide relief by reducing the total amount you owe, making it easier to keep up with payments.
Additionally, if you’re facing unemployment, MHA can offer more immediate relief. For qualified homeowners, the program may allow you to temporarily suspend your mortgage payments or significantly reduce the amount you owe for a certain period, giving you time to get back on your feet financially. This can be a crucial lifeline for those who are out of work and struggling to make ends meet.
However, it’s important to remember that MFA is a government program, and it comes with a fair amount of paperwork. It’s not a quick or easy fix—there are eligibility requirements you must meet, and you’ll need to provide documentation proving your financial situation, including income, hardship, and other relevant information. Be prepared to fill out forms, gather supporting documents, and possibly go through a lengthy review process. While this might seem like a hassle, it’s important to understand that the goal of the program is to provide long-term relief and make your mortgage more sustainable.
MFA is not “free money”—it’s a structured program designed to assist those who truly need help and are willing to work through the steps to get it. While it can offer significant financial relief, it requires commitment, time, and a willingness to comply with the program’s terms.
In short, if you’re struggling with your mortgage payments or worried about losing your home, MHA and MFA may be an option worth exploring. But be prepared for the process to take some effort on your part. If you think you might qualify, it’s a good idea to reach out to your mortgage lender, a HUD-approved housing counselor, or a financial advisor to get started and see what options are available to you.
4. Negotiate with your bank:
Lots of 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.
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 lots of calls and the patience of a saint to get through the bureaucracy. Never, ever 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.
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 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.
We work with homeowners in Augusta to find solutions to foreclosure problems.
We’ll let you know how we can help.