When you fall behind in your mortgage payments on your Kansas City 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 Kansas City and maybe even keep your house, even if you’re seriously behind in payments. Lots of properties in Kansas City have been lost to foreclosure, but there are many ways to avoid it.
If you’re being crushed by lots of debt, bankruptcy can be a good way to negotiate with lots of lenders at once. And if you are facing foreclosure on your [market-city] house, filing for bankruptcy can slow things down a bit. It’s a lot of work, and it won’t help you avoid your mortgage and should be a last resort. Different lenders will treat your circumstances in unique ways. You’d benefit from serious professional help – the best you can afford.
2. Defer Payments
This has been in play for years and since the pandemic with a moratorium on
3. 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. Sell the Home:
If you’re behind in your payments it’s time to take a good hard look at your finances. The previous options are great if you had a minor setback and need a bit of help to recover. But if the setback is not minor and you are in over your head and are going to continue to struggle to make payments, then it’s time to consider selling the home.
We have numerous articles here on our blog about how we buy houses in Kansas City, pay cash and close fast. We also have quite a few articles on how to seek out a good Realtor. If your home is in excellent condition and a desirable location, then reaching out to a good Realtor to help you sell is an excellent option. (If you need help finding a good Realtor, we can recommend one to you.) With a great house and location, a Realtor can often help you sell fast. And if you owe more than your home is worth, many Realtors today can help you navigate negotiating a short payoff with the bank.
If your home is in less than perfect condition or might have some location problems, you may be better served by working with a private investor, like Scott here at kcmoHomeBuyer to see what he might be able to offer you with an all-cash offer or possibly taking over your payments.
We work with homeowners in Kansas City to find solutions to foreclosure problems. One of the fastest solutions is to sell the property to us. But we have team players that are also experts on refinancing and negotiating with your lender.
We’ll let you know how we can help.
Get Started by Requesting our Guide Below
Download Your FREE Stop Foreclosure Guide BelowJust put in your name and email, click "Submit" and we'll email you the Free Guide right away.
NOT PENALIZED FOR NOT GETTING EVERYTHING CLEANED OUT OF THE HOUSE
I liked the fact that I wasn’t penalized or felt pressure for not getting everything cleaned out of the house. There was over 40 years and three families’ worth of treasure stored in the house, making me feel that the challenge of cleaning it was going to be impossible. I did what I could and you never hesitated in telling me that it’s ok to leave the rest behind.