There are several options that could help you retain your home. To determine which might best suit your
needs, please review the following:
Repayment Plan
A repayment plan allows you to pay your regular monthly payment plus additional funds applied to past-due amounts. Payments are distributed over an agreed-upon period of time.
This option may work for you if:
- You can afford your regular monthly payments and other expenses.
- You have surplus funds at the end of the month.
Hardship Loan Modification
This option allows you to roll interest and escrow shortage from delinquent payments into the existing loan. You may qualify for an interest-rate reduction to have the term of the loan extended.
This option may work for you if:
- You can afford your regular monthly payment or a slight increase in your payment, plus other monthly expenses.
- You don’t have substantial funds left at the end of the month.
Options Regarding Selling Your Home
If you face the possibility of selling your home, ask yourself the following before starting the process:
- Are you prepared to sell your home?
- Are you unable to recover from a situation that caused you to fall behind on your mortgage payments?
- Are you unable to afford your regular monthly payment and have no means to catch up on delinquent payments?
- Make sure you work with a real estate professional that understands and can explain the default / foreclosure process and the importance of timelines
If you decide to sell your home and don’t have enough equity in your home, consider the following options.
Short Sale
A short sale in real estate is when a lender allows a homeowner to sell their home for less than the debt owed on the mortgage. By working with the right listing agent, many homeowners are able to have all their debt forgiven.
Deed In Lieu of Foreclosure
This option allows you to deed your home back to your lender or investor instead of facing foreclosure.
This option may work for you if:
- You can’t afford your regular monthly payment or a slight increase in your payment, plus other monthly expenses.
- You don’t have substantial funds left at the end of the month.
- Consult with your mortgage company, a non-profit, attorney, and or an informed realtor of the long-term ramifications of this option