If you’re facing foreclosure, you have choices to get back on the right track and save your house. The degree to is dependent upon several aspects, particularly you make contact with it and your financial outlook. There’s no lack of mortgage aid options; the issue is which ones you may be approved for.
Locate your lender’s contact information on your own monthly mortgage statement. Contact it as soon as you are or expect to experience mortgage-related trouble. As HUD notes, the quicker you act, the more choices you will have at your disposal.
Consult your lender concerning temporary assistance, if you’re experiencing short-term unemployment or decreased income. The Federal Trade Commission notes your lender may approve you for a kind of mortgage repayment suspension or reduction. Whatever the case, you will likely need to pay this money back at some point, either on a payment schedule or in a lump sum when you resume regular payments or at the end of your loan. If your financial situation does not improve during the assistance period, however, you may end up up against foreclosure.
Document your financial hardship for a longer-term mortgage repair. Most important lenders participate in the national Making Home Affordable strategy, as Treasury Department information shows. If you’re facing foreclosure, then the Home Affordable Modification Program (HAMP) is likely your best option. As HAMP literature says, you will need to show your mortgage payment exceeds 31 percent of your gross monthly earnings to qualify. You need to show your lender which a new, modified mortgage payment can be made by you, if approved. Your power is at the mercy of your income job and expense scenario.
Query your lender about a brief sale or deed instead of foreclosure, particularly if you’re in such poor financial shape that you don’t qualify for a deferral or alteration. As the Building House Affordable website clarifies, you lose your house in both cases — selling it for less than that which is left on your loan in a brief sale and transferring your residence’s deed to a lender in a deed instead of foreclosure — however, you do prevent foreclosure.
