When you fall behind on your mortgage payments on your Dallas 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 Dallas and maybe even keep your house, even if you’re seriously behind in payments. Lots of properties in Dallas have been lost to foreclosure, but there are many ways to avoid it.
if you’re behind on mortgage payments, contacting your lender as soon as possible is usually one of the most important steps you can take.
Many homeowners avoid calling because they’re worried about what the lender will say, but lenders often have options available, especially if you reach out before the foreclosure process moves too far along.
Here are some reasons to contact your lender right away:
- Explain your situation. Let them know why you’ve fallen behind and whether your financial hardship is temporary or long-term.
- Ask about assistance programs. You may qualify for:
- A repayment plan
- A loan modification
- Forbearance
- Payment deferral options
- Find out your timeline. Ask how many payments you’re behind and whether any foreclosure notices have been issued.
- Request everything in writing. Keep records of all conversations, emails, and agreements.
Before you call, gather:
- Your loan account number
- Information about your income and expenses
- Details about why you missed payments
- An estimate of when you may be able to resume payments
If you live in Texas
If you’re behind on mortgage payments in Texas, it’s especially important to act quickly because the foreclosure process can move relatively fast once it begins. Contacting your lender early can sometimes help you avoid foreclosure altogether.
Consider your long-term goal
Ask yourself:
- Do you want to keep the home? Explore loan assistance and workout options with your lender.
- Can you no longer afford the home? You may want to discuss alternatives, such as selling the property before foreclosure.
Help, I’m Behind in My Mortgage Payments in Dallas! 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.
If you’re behind on mortgage payments, filing bankruptcy may help in some situations, but it’s not always the best solution. The right choice depends on your income, how far behind you are, your long-term goals, and whether you want to keep your home.
Yes. Filing bankruptcy can trigger an automatic stay, which temporarily stops most collection actions, including foreclosure proceedings. However, bankruptcy is a serious financial and legal decision that should be considered carefully.
Chapter 13 Bankruptcy
A Chapter 13 bankruptcy may help if:
- You have regular income.
- You want to keep your home.
- You can afford your current mortgage payment plus a repayment plan for past-due amounts.
- You’re behind on payments but believe you can catch up over time.
In Chapter 13, mortgage arrears are typically repaid over a three- to five-year period while you continue making your regular mortgage payments.
Chapter 7 Bankruptcy
A Chapter 7 bankruptcy may help if:
- You cannot afford to keep the home.
- You need relief from other debts such as credit cards or medical bills.
- You want additional time before a foreclosure sale occurs.
Chapter 7 usually does not provide a long-term solution for saving a home if you cannot resume mortgage payments.
Questions to Ask Before Filing Bankruptcy
Before deciding to file bankruptcy, ask yourself:
- Do I want to keep my house?
- Can I realistically afford my mortgage going forward?
- How many payments am I behind?
- Do I have significant other debts?
- Have I explored loan modification or mortgage forbearance options?
- Would selling my home be a better financial decision?
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 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:
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 Texas
In Texas, the foreclosure process can move relatively quickly. If you’ve received a notice of default or notice of sale, it’s important to act promptly. Speaking with a qualified bankruptcy attorney, HUD-approved housing counselor, or real estate professional experienced with distressed properties can help you understand your options.
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 mortgage 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 Dallas to find solutions to foreclosure problems.
We’ll let you know how we can help.
Give us a call now at (214) 723-1304 or fill out the form on this website to get started.
In Summary
Depending on your circumstances, alternatives may include:
- Loan modification
- Mortgage forbearance
- Repayment plans with your lender
- Refinancing (if eligible)
- Selling the property before foreclosure
- Deed in lieu of foreclosure
- Short sale
If you have equity in your home, selling before foreclosure may allow you to protect that equity rather than losing it through the foreclosure process. All the above solution are to help you when you are behind on your mortgage payments.
If You’re in Texas
In Texas, the foreclosure process can move relatively quickly. If you’ve received a notice of default or notice of sale, it’s important to act promptly. Speaking with a qualified bankruptcy attorney, HUD-approved housing counselor, or real estate professional experienced with distressed properties can help you understand your options.