Late Mortgage Payments and How to Deal with Them
When you fall behind on your mortgage, staying in your home may not be possible. You may be able to avoid foreclosure, for example, but have to walk away from your home. Of course, the ideal situation is one where you are able to resolve your mortgage delinquency, avoid foreclosure, and keep your home.
Let’s take a look at some different programs and options that might help you work with your lenders and avoid foreclosure.
Refinance your Mortgage
When you refinance your mortgage, you could receive a new account with a lower interest rate or other favorable terms. The benefit here is that refinancing can make your payments or terms more affordable.
With a mortgage reinstatement, you must bring your delinquent loan current in one lump sum payment. The benefit of a mortgage reinstatement is that it allows you to avoid foreclosure by “catching up” and bringing your account current. If you cannot do that immediately, you will need to prove the funds needed will be available by a specific future date. This may also follow a forbearance plan as described below.
Mortgage Repayment Plan
Using this option, you pay back your past-due payments together with your normal monthly payments over an extended period of time. The benefit is that you can catch up on your late payments without having to make a large lump sum payment (as with a mortgage reinstatement).
Mortgage Forbearance Plan
Following a forbearance plan, you make no payments or reduced payments for a specific period of time. The benefit is that the forbearance period is meant to give you the time you need to improve your financial situation.
When it comes to mortgage modification, you receive modified terms for your account designed to make your payment more affordable. In order to do this, you must successfully complete a 3 or 4 month trial period plan. Mortgage modification is often used as a permanent solution to a long-term or permanent hardship by modifying your account so that your payments or terms are more affordable.
When you owe more than your home is worth, a short sale allows you to sell your home and pay off a portion of the outstanding balance. The benefit of a short sale is that it allows you to transition out of your home and avoid going through foreclosure. In some cases you are eligible for relocation assistance to help with the transition.
Deed in Lieu of Foreclosure
A deed in lieu of foreclosure is a deed instrument that allows you to transfer ownership of your property back to the lender. The benefit of a deed in lieu of foreclosure is that it allows you to transition out of your home and avoid going through foreclosure. This is a useful option if there are no other liens on your home. In some cases you are eligible for relocation assistance to help with the transition.
Avoiding Mortgage Foreclosure
With all of these options available, you will need to work with your lender to see what programs you may qualify for. When you do, you’ll find the application process is not an easy one, and lenders can make it very difficult for you.
When you hire the law firm of Harold Shepley & Associates, you will work directly with a Mortgage Foreclosure Defense Specialist who will be with you every step of the way. Our Specialist will be your point of contact with the lender and find out what options you may qualify for.
We will try to make this difficult time as easy for you as possible by taking on the burden of phone calls and submitting documents to your lender so that you do not miss time from work and your family.
Take action today by calling Harold Shepley & Associates. Gain a peace of mind as we work with your lender to resolve your delinquency.
More information about debt relief is available on our Debt Negotiation page.
Call us today at 877-827-9006, or complete our easy to use contact form. We’re ready to help.