The thought of losing the place you have called home for years can make anyone feel stressed and worried. Maybe the bills have gotten out of hand and debts have continued to grow, and as a result, made mortgage payments more and more difficult to make on time. When this happens, it is only a matter of time before foreclosure starts to become a reality and you may start looking for alternatives that will allow you to keep your home and avoid being left homeless.
The following are alternatives to foreclosure:
- Partial claim. The arrangement of a one-time payment obtained from the FHA- Insurance fund that brings your mortgage current and allows you to make payments.
- Forbearance. The temporary suspension or reduction of your mortgage payments.
- Mortgage modification. The refinancing or extension of the mortgage loan terms.
The abovementioned alternatives are not the only way for you to keep your home if it is not foreclosed on. There are other options, such as deed-in-lieu of foreclosure and pre-foreclosure sale, but both result in the loss of your home. Should you be eligible for an alternative solution, your lender will be able to inform you of which options you qualify for and which may be best for you and your financial situation.
Foreclosure is something that scares a lot of homeowners. When you have taken the time to make a house your home, raised your family and created memories, it is not easy to say goodbye, whether it is your choice or the result of financial challenges. If you have fallen behind on mortgage payments and fear foreclosure, an attorney may be able to help.