Keeping Your Home

If you are having trouble making your mortgage payments but wish to keep your home there are some options for you to pursue. Don't ignore the problem. Contact your lender as soon as possible. Lenders have set up programs to help fix bad loans and slow foreclosures - these are called Loan Workout Programs or Loan Modifications.  Below are some options that lenders may have to assist you.

Forbearance:  

An agreement to reduce or suspend payment for a short period of time. 

Loan Modification:

An agreement to change the terms of the original loan to make the payments more affordable. For example, missed payments can be added to the existing loan balance, the interest rate may be modified or the loan term extended. 

Claim Advance/Partial Claim: 

If the loan is insured, the home owner may qualify for an interest-free loan from the mortgage guarantor to bring the account current.  If so, the home owner will be required to sign a promissory note and a lien will be recorded against the home until the loan is paid in full.

Reinstatement:

Paying the total amount owed in a lump sum by a specific date in exchange for forbearance.

Repayment plan: 

An agreement to resume making monthly payments with a portion of the past due payments each month until they are caught up.

BEWARE of loan modification scams and people who ask for you to sign your deed over to them and they will pay off your loan or pay your missed payments. DO NOT FALL PREY to these tactics. Contact me for a list of FREE agencies, approved by the government, who can assist you with your lender and any loan modification processes.