Alternates to Foreclosure
Are you facing foreclosure? The thought of losing your home can definitely be scary, but there are alternatives to foreclosures that can help you retain ownership of the home. The type of mortgage that you have may determine the alternatives that you can pursue to stay in your home. Your REALTOR® can help you to review your situation and find a solution that is right for you. The options that follow are possibilities for many struggling homeowners.
Special forbearance. Special forbearance plans will provide for a temporary suspension or reduction of your mortgage payments. The payments will be increased at an agreed upon point in the future and will require you to repay the delinquency plus the payments due.
HUD partial claim. If you have an FHA insured loan, the lender may be able to receive a one-time payment from FHA that will bring the mortgage into a current status.
Refinance. If you refinance your mortgage, you can use the equity that has been built up in your home in order to pay your late mortgage payments. You can also negotiate for better terms that can lower the interest rate on your loan, or that can lower your monthly payments to a level that you find more affordable with your current budget. You are not limited to refinancing your mortgage with your existing lender; you can elect to choose a new lender.