Falling behind on mortgage payments does not mean the house is gone. It means a clock started, and in Missouri that clock moves faster than most people expect, because the majority of loans here can be foreclosed without a court hearing. Call the servicer before anything else and ask what loss mitigation they offer. Forbearance pauses the payments for a defined stretch. A repayment plan spreads the arrears across a year on top of what you already owe each month. A modification rewrites the loan so the payment matches the budget you actually have. All three are worth asking about, and none of them help if the call never happens. Some people who fall behind on payments and sell the house end up better off than they would have been, because equity that a foreclosure sale would have absorbed stays with them instead. If the arrears have grown past what any plan can carry, read what your options are before a foreclosure and look at how we buy houses, then make the decision with real numbers in front of you rather than a stack of notices on the counter.
As homebuyers in Missouri, we have a few options that can help you to avoid foreclosure in Ellisville, MO, and maybe even keep your property, even if you’re seriously behind in payments. We pay cash for houses in Ellisville from residents who are facing foreclosure and need to sell fast. Lots of properties in Ellisville, MO have been lost to foreclosure, but there are many ways to avoid it.
5 Things You Can Do To Avoid Foreclosure In Ellisville, MO
1. Bankruptcy in Missouri
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 your MO property
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) in Ellisville
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 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 lots of paperwork. It ain’t free money – you gotta work for it.
4. Negotiate with your bank in Ellisville, Missouri
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 property 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 Ellisville, MO to find solutions to foreclosure problems. We’ll let you know how we can help.
Sell My House In Ellisville, MO
You can bypass all these steps quickly and easily by selling your property to local Missouri home buyers for cash. At Chris Buys Homes in St. Louis, that's exactly what we specialize in buying homes fast. Homeowners who simply don't want the struggle in catching up on the past due balance of mortgage payments but just want to sell their property quickly can do so with one phone call to (314) 334-1481. Sell your house in St. Louis directly to us!
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