You suddenly find yourself behind on your mortgage payments and not sure what to do. Foreclosure is not the only option, if you want to keep your house you can do a number of things, contact your lender to see what programs they offer to help you stay in your home such as:
- Loan Modification: this results in a change of the original terms of the note such as reduction of interest rate; extending the term of the loan; increasing the original loan amount by the amount past due. It would be best to approach your lender when defaulting is imminent.
- Forbearance Plan: this is ideal if your situation is temporary; under this plan the lender may suspend all or part of your monthly payments for a set period of time. the missed payments may then be rolled into the existing loan or it may become a part of a repayment plan or modification.
- Repayment Plan: you may need to send extra payments per month to bring the loan current.
- Refinance: you get a new loan with better terms and pay off the old one using the proceeds from the new loan.
- Short Refinance: where a certain amount of the principal balance is forgiven in conjunction with a repayment and forbearance plan.
- Bankruptcy: your loan terms are modified as part of a court- approved plan.
Any of the listed options will only work if you can afford to make the agreed upon new payment every month in a timely manner. For professional assistance we are always available to bring you resources.
If you are ready to get started and explore your options go here.