Behind on Payments

Feeling Boxed In?

It is a complete surprise to us that there are so many people today losing their homes or filing bankruptcy when there are simple ways to stop home foreclosure.

It's Nothing to be Embarrassed About

A loss of a job, medical expenses and other life-altering occurrences can happen to anyone, causing you to fall behind in your loan payments. If you neglect paying your credit cards it hurts your credit rating, but when you neglect your home loan payments your lender will foreclose, taking ownership of your home.

You might be embarrassed to talk about your financial problems, but that approach doesn't solve anything. You must put your pride on hold if you're truly serious about stopping the foreclosure process.

What Are My Options Once I Receive a Foreclosure Notice?

Refinance

You may be able to refinance the debt. This may help you catch up by reducing the monthly payments to a more affordable level. You may qualify if you have recovered from a financial problem but your net income is less than it was before the failure to pay or if you have a large amount of equity in the property.

Workout

Sometimes your lender may be willing to renegotiate the terms of the loan (by extending its term, for example).

Special Forbearance

Your lender may be able to arrange a repayment plan based on your financial situation. Your lender may even provide for a temporary reduction or suspension of your payments. You may qualify if you have recently lost your job, had an unexpected increase in living expenses, or prove to your lender that your would be able to meet the requirements of the new payment plan.

Partial Claim

Your lender may be able to work with you to obtain an interest-free loan from HUD to bring your mortgage current. You may qualify if your loan is at least 4 months delinquent but no more than 12 months delinquent, your loan is not in foreclosure, or you are able to begin making full mortgage payments.

When your lender files a Partial claim, HUD will pay your lender the amount necessary to bring your mortgage current. You must execute a promissory note, and a Lien will be placed on your property until the promissory note is paid in full. The promissory note is interest-free and will be due if you sell or leave your property, or when your mortgage matures. You need to talk to a housing counseling agency about this option.

Pre-foreclosure Sale

This will allow you to sell your property and pay off your mortgage loan to avoid foreclosure and damage to your credit rating. You may qualify if the appraised value is at least 70% of the amount you owe and the sales price is 95% of the appraised value, the loan is at least 2 months delinquent to the pre-foreclosure sale closing date, and you are able to sell your house within 3 to 5 months.

An additional benefit to this option is the assistance you will receive with the seller-paid closing costs. Contact us for help locating a realtor.

Deed-in-lieu of foreclosure

As a last resort, you may be able to voluntarily "give back" your property to the lender. This won't save your house, but it will help your chances of getting another mortgage loan in the future.

You can qualify if you don't qualify for any of the other options, your attempts at selling the house before foreclosure were unsuccessful, and you don't have another FHA mortgage in default.

Have More Questions?

Read through our comprehensive list of Frequently Asked Questions.

We Can Help You

Birmingham Bancorp Mortgage is Michigan's oldest Federally Approved Lender that refinances mortgages that are delinquent or even in foreclosure. Our team of experts has the knowledge and experience to help almost any homeowner.

We are mortgage lender, not a broker, unlike other companies who advertise or who may try to contact you. You can solve your mortgage problems directly with us.

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"I thought my situation was beyond repair, my mortgage was six months in arrears due to circumstances beyond my control. Birmingham Bancorp gave me the opportunity to save my home and begin rebuilding my credit. Thank you Birmingham Bancorp."

Anonymous Homeowner