Have you inadvertently lost your job or a major source of income recently? Are you delinquent in your mortgage payments, or will you be presently? Is your Option ARM or Alt A ARM getting ready to modify? Have your mortgage payments recently increased? If so, you may not be aware that your lender may have options to prevent foreclosure which are available to you.
Mortgage options centered around helping you avoid losing your home to foreclosure are called mortgage loan workouts. Mortgage lenders provide mortgage workouts to their customers in several different ways.
Ways To Prevent Home Foreclosure
- Deferment – Deferment allows you to pay part of your mortgage payment at a later date, per an agreement with your mortgage lender. The reduction sum of your existing payment is tacked on to your principal, which you will have to pay at a later date. If you need some short-term relief due to a brief loss of pay that has been resolved or soon will be, this is a great solution to stop foreclosure.Student loans, which are normally deferred until sometime after the student graduates from college, are similar to this type of workout. A mortgage can work in the same fashion.
- Repayment Agreement or Forbearance Plan – A forbearance plan may be the solution if you have got behind on your mortgage due to some short term reduction in income that has been resolved. The money you owe from missed mortgage payments can be spread out over a series of monthly payments. You will see a temporary increase in the amount of your mortgage payment, at least until the past due money that you owe is paid back during the forbearance plan. Once the money is paid back that you owe, your mortgage payment will return to its normal level.
- Partial Claim or Second Lien Mortgage – Based on your financial situation you may be able to put the past due amount that you owe into another mortgage that you may or may not have to pay back. This loan will have to be paid back once you are able to refinance or sell your property.
Solutions If You Want To Move
Several solutions exist that can help you stop a foreclosure on your home if you want to move.
- This first solutions is called a short sale. When you get your mortgage company to agree to let you sell your home for less than what you owe on it, it is called a short sale. If you plan to sell your home for less than you owe, you will have to get your mortgage company to agree, since they have a lien on your home. If you plan on selling your home, get started early on the short sale process because it will take some time.
- A Deed In Lieu of Foreclosure is the second option. A Deed In Lieu Of Foreclosure is where you would transfer legal custody, or title, of your house to your mortgage company in exchange for the debt that you owe them. If you do hand them legal ownership of your property you will want to make sure that they totally forgive your debt. If you no longer own or live in the home, the last thing you want is to have to make mortgage payments on it.
Get Started To Prevent Foreclosure
- Your best way to prevent foreclosure is to get the help of your mortgage company. You will be on the way to quickly solving your problems if you contact them and ask for their assistance. If you make an effort in good faith to arrive at a solution they will be more likely to work with you. Good luck.
- Close behind speaking to your mortgage company is speaking to a short sale real estate company.