Know Your Options to Save Your Home: Foreclosure Help 101
Foreclosure Options
Are you behind on your payment, but want to keep your home? Or haven’t you missed a mortgage payment yet, but are worried about falling behind? Now is the time to save your home. You may be eligible to modify your current mortgage with a loan modification agreement to make your payments more affordable. There are programs like HAMP that are specifically designed to help homeowners with recent or past financial difficulties.
What is a loan modification?
A loan modification, the most popular program; it is the change of an existing mortgage loan to an affordable level in response to the borrower’s long-term inability to repay the loan by the lender. Generally, a loan modification involves lowering the interest rate, the principal balance, or extending the term of the loan; or the combination of all three (3). You may qualify if you have recently recovered from a hardship and are able to pay the new payment amount offered. Most lenders can work with homeowners, even if they have a foreclosure date or bad credit.
Loan Modification Requirements:
– You do not earn enough money to pay your current payment
– you lost your job
– You are unemployed
– Current / Back
What are the benefits?
– Eliminate delinquency status with your lender
– Reduced monthly mortgage payment
– New beginning
– Stay home and avoid foreclosure
Principal balance reduction
A principal balance reduction is a process in which a loan modification attorney assists a homeowner by negotiating the balance of principal owed; to reflect the current market value of the property. Typically, to lower your monthly mortgage payment, the interest rate on the loan is lowered to current market rates.
What is a mortgage forbearance agreement?
Your bank can offer a solution to repay your past due payments and avoid foreclosure with a Forbearance Agreement, depending on your situation. The forbearance agreement is made between the delinquent loan and the mortgage lender. In which the lender agrees not to take legal action and foreclose, and the delinquent borrower agrees to a new mortgage payment plan. A mortgage forbearance agreement is a temporary solution designed for delinquent borrowers who have had invisible financial problems. Generally, the Mortgage Forbearance Agreement allows the borrower a minimum of four (4) months and a maximum of twelve (12) monthly mortgage payments.
How to Get Foreclosure Help
We recommend that you research any government program that you may qualify for. If you are unsure about applying for the right government program for you or don’t have the time or energy to deal with your lender; Call us at (855) 901-2224. Every day we help people find and enroll in the right program for their situation!
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