If you own a house and haven’t been able to make your mortgage payments, then you might find yourself facing foreclosure. While your first instinct might be to run and hide from the mortgage company and avoid taking their calls, this is the absolute worst thing you could do. Mortgage companies want to work with you and help you stay in your home, and following these tips could have you avoiding the foreclosure process entirely.
Forbearance
If you have found yourself on the edge of facing a home foreclosure Hattiesburg MS, immediately call your lender and see if you qualify for a forbearance. A forbearance allows you to make reduced mortgage payments, and sometimes no payments at all, for a set period. The agreed-upon time length for most forbearances is usually 3 to 6 months. The only caveat with forbearance is that you have to prove that you will be able to afford your mortgage and make up the missed payments when the forbearance ends.
Loan Modification
A loan modification is an agreement between you and your lender that adjusts the term of the loan. The final goal of completing a modification is to reduce your monthly payments. A modification often involves:
- Reducing the interest rate.
- Extending the term of the loan.
- Adding any payments that are overdue to the loan balance.
Modifying the terms of your loan can significantly reduce your payments, making keeping up on them much easier to handle.
Short Sale
A short sale allows you to sell your house for less than your outstanding loan balance. If you don’t feel that you will continue with your mortgage payments in the near future, this could be the best option for you. Choosing a short sale will also cause less damage to your credit than a foreclosure would. To choose this option, you need to submit a hardship letter to your lender with documentation proving why you can’t pay the mortgage.
