What To Do When You’re Behind on Mortgage Payments in DC

Behind on mortgage payments in Washington DC

Behind on your mortgage? Read this article for a few tips on what you can to do prevent and avoid foreclosure.

Help, I’m behind on mortgage payments in Washington DC!

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When you fall behind on your mortgage payments on your Washington DC 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 avoid foreclosure in Washington DC and maybe even allow you to keep your house, even if you’re seriously behind in payments. Lots of properties in the Washington DC area have been lost to foreclosure, but there are many ways to avoid it.

1. Bankruptcy:

This is usually the tool of last resort. If you’re being crushed by debt, bankruptcy can be a good way to avoid foreclosure and negotiate with many lenders at once. However, it’s a lot of work, and it won’t help you avoid paying your mortgage. Different lenders will treat your circumstances in unique ways, so 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 might be able to participate in MHA. Any loans backed by Fannie Mae or Freddie Mac must be considered for MHA, and other lenders who 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 an avalanche of paperwork. It isn’t free money and you have to work for it.

4. Negotiate with your bank:

Most lenders routinely offer some level of assistance. You have to work hard going this route too, but you might be able to get your interest rate reduced, or even get 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.

Negotiating with a bank can be frustrating. Usually it takes multiple phone calls and the patience of a saint to get through the bureaucracy. Ask for help from everyone with whom you speak at your bank, but don’t sound desperate. Explain your situation, offer supporting documents and reassure the bank that your goal is 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 be able to resume your mortgage payments, which gives them significantly 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 denying someone in need of help.

5. Borrow money from a private investor:

If you’re behind in 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 or at least catch you up on past due payments and thus improve your credit.

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We work with homeowners in Washington DC to find solutions to foreclosure problems.

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