If you have recently experienced an unexpected hardship such as the loss of a job or an illness that led to significant medical bills, you may be struggling to keep up with your mortgage repayments. If this is the case, you may fear that you could lose your home to foreclosure.
If you are facing the possibility of losing your home due to foreclosure proceedings, you should know that there are many options available. However, to benefit from them, you need to take swift action. The following are some of the ways that your lender could assist you so that foreclosure does not become a possibility.
Modifying your loan
If you approach your lender as soon as you believe that you will encounter difficulties in keeping up with your loan repayments, they may be able to help you by modifying the loan. They may be able to help you by changing the interest rate or the monthly repayment amount.
Refinancing
Taking out a new loan to replace your mortgage or give you the funds to continue paying your mortgage could be an option. This is a particularly good strategy if you can take out a loan with a low-interest rate.
Forbearance
Your bank may be able to offer you a forbearance if you approach them when you first start to experience financial difficulties. This will allow you to pause your mortgage repayment obligations for a certain amount of time.
If you are struggling to meet your mortgage repayments, you should not ignore the problem. By exploring your options, you will be empowered to move forward.