Mortgage Forbearance

Mortgage forbearance occurs, when your lender grants you a temporary postponement on making your monthly payments. If you’re dealing with a temporary financial hardship, postponing your payments could be exactly what you need to get back on your feet.

If you want to pursue mortgage forbearance, reach out to your lender as soon as you can!

This option isn’t a permanent solution to an unaffordable mortgage payment, But if you fall behind in your finances temporarily it can give you some breathing room if you need some space to get your finances back on track.

Mortgage Modification

A mortgage modification changes the terms outlined in your original mortgage. You might find a longer loan term, lower interest rate etc.

With this assistance, you can turn your situation around and put yourself in a better financial position. Reach out to your lender if you’d like a mortgage modification. Communicating early can help you avoid an unwelcome outcome. But the exact process varies from lender to lender. You don’t get what you don’t ask for so make sure to ask for the help before its too late!

Repayment Plan

If you missed a few monthly payments, your lender may extend a repayment plan. Essentially, this option is designed to help you catch up on your missed payments without paying a lump sum at a single point in time.

Typically, a repayment plan is on the table after mortgage forbearance. If you’re struggling to keep up with your payments, discuss this option with your lender as soon as possible. Keep in mind that repayment plans are typically less than 6 months and if you’re already behind this may not be the best option for you but can delay a foreclosure till you can come up with more $.

Reinstatement

A mortgage reinstatement involves catching your payments up, by paying the past due amount. For example, you may need to make a lump sum payment that covers several mortgage payments to settle your debt with our mortgage company.

Short Refinance

If you owe more than your home is worth, the lender may consider a short refinance. In this case, the lender would extend a new mortgage loan with a lower loan amount and forgive the remaining balance. Sometimes initiating a foreclosure could end up being more expensive and time consuming then just forgiving a portion of the loan.